Rose patrons enjoy drinks beside The Penrose’s rooftop pool. (Courtesy of UP Marketing Group)
Mere months after opening, a rooftop bar atop The Penrose apartment complex in RiNo is in a legal dispute with the building’s owner over who can use a pool and barbecue area.
“The landlord’s behavior represents a classic bait-and-switch,” Ciaran O’Brien alleges.
The rooftop row threatens to derail what was to be a three-phase rollout of O’Brien drinkeries at The Penrose, including a first-floor coffee shop and a speakeasy in its basement.
“The landlord’s nonstop interference with (O’Brien)’s business operations has raised serious doubts about the possibility of any further phases,” says a lawsuit O’Brien filed Oct. 22.
The Penrose opened last summer at 1740 36th St., a block off Brighton Boulevard near Zeppelin Station. Its development team included former Denver Housing Authority executive Ryan Tobin and local lawyer Parker Semler.
In his lawsuit against the developers, O’Brien says they approached him in late 2022 and asked him to open businesses within The Penrose for both guests and residents. O’Brien signed a seven-year lease and began hiring a staff of 50, he recently told BusinessDen.
“The tenant was very explicit in explaining that its entire business model was based on its continuing ability to access and use the pool,” according to O’Brien’s lawsuit.
The first sign of trouble was when employees of his bar, called Rose, overheard leasing agents tell prospective residents that The Penrose’s rooftop pool was exclusively for residents. Google reviews show that some residents left one-star reviews as a result of the mix-up.
“The rooftop pool, previously advertised as a private, tenant-only amenity, is now accessible to the public and can be reserved by anyone that wants to come,” one man complained.
More recent reviews note a positive change: Rose patrons can no longer use the rooftop pool. But as O’Brien sees it, this is a breach of his lease and a death knell for his business.
“The landlord’s solution to the frenzy caused by its bait-and-switch on the residents was to do a bait-and-switch on its tenant,” according to his lawsuit, filed in Denver District Court.
That claimed switch, which reportedly occurred in mid-August, also limits Rose’s use of a barbecue area. O’Brien calls this “especially absurd and egregious” since his company paid for the BBQ area to be built and because it is the only source of food service at The Penrose. Under the terms of its liquor license, Rose cannot serve alcohol unless it also serves food, O’Brien says.
An aerial photo of The Penrose, 1740 36th St. in Denver. (Courtesy of Captain Colorado Photography)
Still, access to the pool is the biggest holdup. O’Brien anticipates Rose’s revenue will drop 35% to 50% – which is unsustainable – if its customers can’t swim. He says a private event with pool use recently yielded $13,000 while a similar night without access took in just $2,000.
So, O’Brien and his Osta Holdings are asking Judge Ian Kellogg to order The Penrose’s owners to grant Rose customers access to the pool and other rooftop areas. Their lawyers are Elizabeth Vyhmeister and Shelby Morbach in the Denver office of the Kutak Rock law firm.
Tobin and Semler did not return BusinessDen’s calls and emails seeking comment.
Rose patrons enjoy drinks beside The Penrose’s rooftop pool. (Courtesy of UP Marketing Group)
Mere months after opening, a rooftop bar atop The Penrose apartment complex in RiNo is in a legal dispute with the building’s owner over who can use a pool and barbecue area.
“The landlord’s behavior represents a classic bait-and-switch,” Ciaran O’Brien alleges.
The rooftop row threatens to derail what was to be a three-phase rollout of O’Brien drinkeries at The Penrose, including a first-floor coffee shop and a speakeasy in its basement.
“The landlord’s nonstop interference with (O’Brien)’s business operations has raised serious doubts about the possibility of any further phases,” says a lawsuit O’Brien filed Oct. 22.
The Penrose opened last summer at 1740 36th St., a block off Brighton Boulevard near Zeppelin Station. Its development team included former Denver Housing Authority executive Ryan Tobin and local lawyer Parker Semler.
In his lawsuit against the developers, O’Brien says they approached him in late 2022 and asked him to open businesses within The Penrose for both guests and residents. O’Brien signed a seven-year lease and began hiring a staff of 50, he recently told BusinessDen.
“The tenant was very explicit in explaining that its entire business model was based on its continuing ability to access and use the pool,” according to O’Brien’s lawsuit.
The first sign of trouble was when employees of his bar, called Rose, overheard leasing agents tell prospective residents that The Penrose’s rooftop pool was exclusively for residents. Google reviews show that some residents left one-star reviews as a result of the mix-up.
“The rooftop pool, previously advertised as a private, tenant-only amenity, is now accessible to the public and can be reserved by anyone that wants to come,” one man complained.
More recent reviews note a positive change: Rose patrons can no longer use the rooftop pool. But as O’Brien sees it, this is a breach of his lease and a death knell for his business.
“The landlord’s solution to the frenzy caused by its bait-and-switch on the residents was to do a bait-and-switch on its tenant,” according to his lawsuit, filed in Denver District Court.
That claimed switch, which reportedly occurred in mid-August, also limits Rose’s use of a barbecue area. O’Brien calls this “especially absurd and egregious” since his company paid for the BBQ area to be built and because it is the only source of food service at The Penrose. Under the terms of its liquor license, Rose cannot serve alcohol unless it also serves food, O’Brien says.
An aerial photo of The Penrose, 1740 36th St. in Denver. (Courtesy of Captain Colorado Photography)
Still, access to the pool is the biggest holdup. O’Brien anticipates Rose’s revenue will drop 35% to 50% – which is unsustainable – if its customers can’t swim. He says a private event with pool use recently yielded $13,000 while a similar night without access took in just $2,000.
So, O’Brien and his Osta Holdings are asking Judge Ian Kellogg to order The Penrose’s owners to grant Rose customers access to the pool and other rooftop areas. Their lawyers are Elizabeth Vyhmeister and Shelby Morbach in the Denver office of the Kutak Rock law firm.
Tobin and Semler did not return BusinessDen’s calls and emails seeking comment.
