The 170,000 square feet of retail space at The Landmark sold for $33 million in 2017. (BusinessDen file)
A movie theater in Greenwood Village owes a half-million dollars in back rent, according to its landlord, raising questions about its financial viability as other theaters close.
Landmark Theatres, a Hollywood-based chain with 32 locations nationwide, has four theaters in Colorado: three in Denver and another at 5415 Landmark Place in Greenwood Village.
On Dec. 1, Landmark Greenwood Village was sued by its landlord in an Englewood court.
Sperry Equities’ lawsuit paints a picture of a struggling six-screen theater. Though their original lease dates back to 2006, it was amended in 2021 to require that Landmark make deferred rent payments, suggesting the theater had put off paying rent during the pandemic.
Since then, Landmark has failed on many occasions to pay past and current rent, according to its landlord. Reminders had to be sent out in April, July, August, September and November.
“Although, in some instances, Tenant paid varying amounts owed to Landlord in response to Landlord’s written demands, Tenant has not had a current balance under the lease since at least April of 2023 and Tenant continually fails to pay rent as and when owed,” the lawsuit alleges.
“Tenant’s outstanding balance owed to Landlord under the lease is $491,223,” it added.
The theater is part of a development that includes other retail buildings owned by Sperry Equities, a California company, property records show. Its initial developer was Zachary Davidson, who committed suicide in 2013 after being indicted for embezzlement.
In July, Landmark closed a theater in Peoria, Ill. Two months later, it did so in Milwaukee. It has also closed several locations in California since the start of the pandemic. In Minneapolis, Landmark shut down a theater after its landlord sued it for $350,000 in back rent.
In Cap Hill, patrons of Landmark’s Esquire Theatre at 590 Downing St. are rallying to save it from redevelopment. The current owners, real estate brokers Tim Finholm and Sam Leger, bought the property after Landmark stopped paying rent in 2020.
The Esquire Theatre at 590 N. Downing St. (Courtesy of Unique Properties)
In a statement released by the owners last week, they said Landmark “has indicated they will not be renewing their lease term” for the Esquire building. The property’s profile on real estate site LoopNet states the existing lease expires in July 2024 and does not include a renewal option. A spokeswoman for the owners did not respond when asked to clarify if Esquire had the option to renew its lease.
Landmark, which did not answer several interview requests, also runs the Mayan Theatre in the Baker neighborhood and the Chez Artiste Theatre in University Hills. It previously operated the Olde Town Stadium 14 theater in Arvada but shut that down in 2017.
Sperry Equities is represented in its lawsuit by attorneys David Brewster and Nate Arrington with the law firm Otten Johnson Robinson Neff & Ragonetti in Denver.
BusinessDen staffer Matt Geiger contributed reporting.
