The building at 7284 S. Potomac St. in Arapahoe County on Dec. 6, 2025. (Thomas Gounley/BusinessDen)
The local owner of a warehouse in Arapahoe County has filed for bankruptcy after the property’s lender put it into receivership, which the owner thinks is unneeded.
Encompass 53 LLC, an affiliate of Denver-based Central Development Properties, filed for Chapter 11 protection Nov. 21. The entity owns 7284 S. Potomac St., a 4-acre corner lot a half mile north of the Denver Broncos training facility in Dove Valley.
Central bought the property for $836,000 in 2020, according to public records. In May 2024, the company took out a $9 million construction loan from Smoky Hill Financing LLC, an entity formed by Denver resident Kathleen Reilly. The loan was to be repaid by Nov. 30 of this year.
Central subsequently built what Smoky Hill referred to in bankruptcy court last month as an “unfinished industrial facility.”
“Although a certificate of occupancy was issued, the current structure is only an empty shell; there are no demising walls or tenant improvements,” Smoky Hill wrote.
The bankruptcy filing came nearly three weeks after Smoky Hill filed a lawsuit requesting that a receiver be appointed to oversee the property.
In that Nov. 3 lawsuit, Smoky Hill said Central had defaulted on the loan in multiple ways, including by making false statements when it took out the loan that it “had funds in excess of the loan proceeds sufficient to complete the Project.”
“The Property is at risk of physical harm or injury. In particular, the building requires utilities and heat to prevent freezing or other damage, plus maintenance and security to prevent deterioration or damage,” the lender wrote.
Arapahoe County District Judge Thomas Henderson approved that request the same day, appointing Denver’s R2 Advisors as receiver.
On Nov. 17, Central asked Henderson to reconsider, saying Smoky Hill’s lawsuit was “based upon a factually inaccurate and incomplete record, replete with overbroad statements and characterizations of the loan documents, unproven and unsubstantiated allegations and statements of fact, and misstatements of facts.”
Central denied making false statements and said it has always had the ability to complete the project. It also said it had not missed any payments on the loan and there was no risk to the building.
“Encompass and its principals are sophisticated developers with decades of experience doing business in Colorado … and are more than capable of preventing the Property from freezing during the winter months and timely paying all utilities,” it said.
Before the judge could weigh in, however, Encompass 53 LLC submitted the bankruptcy filing, which paused the receivership case.
Reached by BusinessDen last week, Central Development founder Jeremy Records declined to discuss specifics.
“The property is not in peril,” he said. “The property is fine. The property is complete.”
According to Smoky Hill, which is also trying to foreclose on the property, Central hired Colliers to market the building for sale, asking $12 million. The lender said Central leased part of it to a gymnastics studio in July, although the property’s current zoning doesn’t allow that use. The tenant hasn’t taken possession of the space and thus doesn’t pay for it, according to the lender.
Denver attorney Daniel Culhane is representing the lender.
The building at 7284 S. Potomac St. in Arapahoe County on Dec. 6, 2025. (Thomas Gounley/BusinessDen)
The local owner of a warehouse in Arapahoe County has filed for bankruptcy after the property’s lender put it into receivership, which the owner thinks is unneeded.
Encompass 53 LLC, an affiliate of Denver-based Central Development Properties, filed for Chapter 11 protection Nov. 21. The entity owns 7284 S. Potomac St., a 4-acre corner lot a half mile north of the Denver Broncos training facility in Dove Valley.
Central bought the property for $836,000 in 2020, according to public records. In May 2024, the company took out a $9 million construction loan from Smoky Hill Financing LLC, an entity formed by Denver resident Kathleen Reilly. The loan was to be repaid by Nov. 30 of this year.
Central subsequently built what Smoky Hill referred to in bankruptcy court last month as an “unfinished industrial facility.”
“Although a certificate of occupancy was issued, the current structure is only an empty shell; there are no demising walls or tenant improvements,” Smoky Hill wrote.
The bankruptcy filing came nearly three weeks after Smoky Hill filed a lawsuit requesting that a receiver be appointed to oversee the property.
In that Nov. 3 lawsuit, Smoky Hill said Central had defaulted on the loan in multiple ways, including by making false statements when it took out the loan that it “had funds in excess of the loan proceeds sufficient to complete the Project.”
“The Property is at risk of physical harm or injury. In particular, the building requires utilities and heat to prevent freezing or other damage, plus maintenance and security to prevent deterioration or damage,” the lender wrote.
Arapahoe County District Judge Thomas Henderson approved that request the same day, appointing Denver’s R2 Advisors as receiver.
On Nov. 17, Central asked Henderson to reconsider, saying Smoky Hill’s lawsuit was “based upon a factually inaccurate and incomplete record, replete with overbroad statements and characterizations of the loan documents, unproven and unsubstantiated allegations and statements of fact, and misstatements of facts.”
Central denied making false statements and said it has always had the ability to complete the project. It also said it had not missed any payments on the loan and there was no risk to the building.
“Encompass and its principals are sophisticated developers with decades of experience doing business in Colorado … and are more than capable of preventing the Property from freezing during the winter months and timely paying all utilities,” it said.
Before the judge could weigh in, however, Encompass 53 LLC submitted the bankruptcy filing, which paused the receivership case.
Reached by BusinessDen last week, Central Development founder Jeremy Records declined to discuss specifics.
“The property is not in peril,” he said. “The property is fine. The property is complete.”
According to Smoky Hill, which is also trying to foreclose on the property, Central hired Colliers to market the building for sale, asking $12 million. The lender said Central leased part of it to a gymnastics studio in July, although the property’s current zoning doesn’t allow that use. The tenant hasn’t taken possession of the space and thus doesn’t pay for it, according to the lender.
Denver attorney Daniel Culhane is representing the lender.
