Known for years as the “Marijuana Mansion,” the historic Creswell Mansion located at 1244 Grant Street in Denver’s Capitol Hill neighborhood is facing a new rub of the green.
It's been sold to a new owner after several months on the commercial real estate market.
The mansion, initially listed for sale for $2.3 million last August, is now pending an offer for reduced sale price of $995,000, according to Redfin .
Owners Lisa Leder and Amy Gunsaullus of Best Properties, a Florida-based investment firm, bought the mansion through an LLC in 2019 for about $1.2 million, according to records from PropertyShark.
The property was initially purchased with a second, leased out building that is currently home to a Green Dragon Dispensary — but that parcel was not included in the most recent sale, according to Leder.
Initially designed in 1889 by Denver architect John J. Huddart for businessman Joseph Creswell and his family, the mansion features a distinctive red sandstone exterior and a blend of Richardsonian Romanesque and Queen Anne architectural styles.
The building is currently zoned for commercial use, but the buyer will have the option to re-zone it for residential use, as initially advertised in the original real estate listing by commercial real estate firm Marcus & Millichap. The listing is no longer available on its site.
Under Leder’s ownership, the Marijuana Mansion ran as a “unique immersive experience” which included tours, photoshoots, and private events. Taking cues from Meow Wolf, it was also set up as a museum and interactive art exhibition. However, the bread and butter of the business, according to Leder, was the mansion’s use as a “cannabis friendly” events space.
After more than five years of owning the historic Denver property, Leder decided to sell the mansion, citing challenges with running it as an event space.
Despite a unique business plan and venue, Leder said she faced numerous challenges from multiple city agencies regarding zoning, recent city council legislation regarding marijuana hospitality licensing in Denver , as well as Americans with Disability Act (ADA) requirements that would be either too costly or unfeasible to fulfill, given the building’s historic landmark status.
“We were never able to get a hospitality license because we were too close to the setback for getting a license. There was 1,000-foot setback for many day cares, or parks are different things, schools, and things like that. I think we were like four or five feet short from some facility that they deemed on that list,” Leder said. “Because of that, we were not eligible to apply for hospitality license. In addition, the regulations for the hospitality license are very strict. Meaning you can't serve alcohol. You would have to have a tremendous amount of time, air purification systems to scrub smoke, which costs upwards of over $100,000.”
Due to the changes in regulations, Leder said, the venue could no longer hold consumption events, but instead would have to contract busses, which are licensed. That process proved to be cost prohibitive, Leder said.
Additionally, while the tours offered a "fun" and "unique" experience for tourists and locals alike, Leder said they were a “loss leader” for the business.
At one point, Leder said she considered changing the business model to a “speakeasy” concept serving alcohol, but challenges related to licensing, the building’s modernization, and historic status remained cost prohibitive.
The Creswell Mansion was added to the National Register of Historic Places in 1977.
The City of Denver's Department of Excise and Licenses offered a different version of events from Leder.
The department said it has never received an application for a marijuana hospitality license at 1244 Grant St.
Additionally, the department said it has investigated multiple complaints regarding unlicensed and illegal marijuana consumption events, provided the business at that location information about the requirements for getting a license and offered to provide licensing navigation support.
There are now five businesses with various licenses to operate marijuana consumption businesses in Denver, according to the city. Licensed marijuana hospitality businesses in Denver include the Coffee Joint and Tetra Lounge .
The Creswell Mansion is well established in cannabis lore as the “Marijuana Mansion,” even before its associations with Leder and Green Dragon.
In 2013, the law firm of Vicente Sederberg LLP, moved its office into the mansion right after they had participated in writing Amendment 64, which voters passed with 55% support. The measure legalized adult recreational marijuana use in Colorado — the first in the nation to do so.
As previously reported by the Denver Gazette’s sister publication Colorado Politics , the cannabis industry in Colorado has faced significant regulatory challenges as it seeks to expand hospitality facilities where marijuana can be consumed.
These hospitality rooms, approved by a 2019 state law, have been slow to take off, with stringent regulations and public safety concerns hindering their success. Issues such as daily sales limits, transportation safety, and high operational costs have created barriers for these businesses, according to industry officials.
Reflecting on the situations that led to the eventual sale of the Marijuana Mansion, Leder expressed a sense of loss and frustration with the current regulatory environment surrounding the cannabis industry.
"It's ironic that despite the legalization movement, there's virtually no place in Denver to consume marijuana legally," she said. "It feels like we've gone backwards, not forward."
Eric Escudero, communications director for Denver's Department of Excise and Licenses, said Denver has "led the way nationally by creating the first regulated legal recreational market in America."
"The marijuana industry in Denver was legitimized because the majority of marijuana businesses have followed the rules and regulations that protect public safety, virtually eliminate the local illicit marijuana market, and contribute tax revenue that support critical city programs, such as affordable housing and contributions to the city general fund to pave city streets," Escudero said. "Thousands of jobs across the Mile High City have been created because of legitimate and licensed marijuana businesses."
"We are always eager to support any entrepreneur who wants to join the legitimate marijuana industry," Escudero said.
The Marijuana Mansion will have a "closing sale" this weekend on Friday, Saturday and Sunday from noon to 4 p.m. to sell off its remaining antiques, furniture and collectibles.
The sale of the Creswell Mansion is scheduled to close in June, Leder said.
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