Downtown Denver’s Apartment Plan Faces Funding Roadblock

A Towering Challenge for Downtown Revival

A Denver real estate group is making a bold play to transform an aging 475 17th Street—a vacant office tower—into 140 residential units, but the city’s financial backers aren’t biting… yet. The proposal, priced at $77 million, includes a $29 million loan request from the Downtown Development Authority (DDDA). At $207,000 per unit, the figures raised eyebrows at the DDDA, which has approved four other conversions at far lower costs—ranging from $78,650 to $146,550 per unit.

The City’s Cautious Bet on Downtown Living

Denver has $470 million in bond funds earmarked for downtown revitalization, with a focus on office-to-residential conversions to lure residents back to the city center. Yet Revesco Properties’ numbers didn’t align with the DDDA’s standards. The agency’s track record is mixed: one project at 820 16th Street collapsed after a lender took over, and another $64.5 million mixed-use hotel plan in the old Greyhound block was rejected outright.

Pricing Out the Market?

Revesco envisions a mix of small studios ($1,500/month) and one-bedrooms ($2,112/month), with a few two- and three-bedroom units. While the company insists the rents are viable, the DDDA remains skeptical. The door isn’t completely closed—Revesco could revise its proposal or explore alternative funding like low-income housing tax credits to reduce its loan dependency.

The Bigger Picture: Risk vs. Reward

Denver’s downtown is grappling with empty offices, and converting them into housing is a key strategy—but not all projects pencil out. High costs, financial risks, and uncertain demand can derail even the most promising ventures. The city wants to spur growth, but it’s equally determined not to waste public funds on unsustainable ventures.

For now, 475 17th Street remains an empty shell—awaiting a plan bold enough to win over the skeptics.