Downtown Denver’s Apartment Plan Faces Funding Roadblock

A Denver real estate group wants to turn an empty office tower at 475 17th Street into 140 apartments, but the city’s development fund isn’t ready to back the project—yet. The plan costs $77 million, with Revesco Properties asking for a $29 million loan from the Downtown Development Authority (DDDA). That’s about $207, 000 per unit, which the DDDA found too steep compared to other conversions it has approved. The city agency has $470 million in bond money for downtown upgrades, prioritizing office-to-home projects to bring more residents back to the city center. Yet Revesco’s numbers didn’t impress them. The DDDA has backed four other conversions, ranging from $78, 650 to $146, 550 per unit. One of those projects, at 820 16th Street, even collapsed after a lender took over the building. The DDDA also recently passed on a $64. 5 million request for a mixed-use hotel in the old Greyhound block, showing it’s picky about where its money goes.Revesco’s plan included small studios renting for $1, 500 and larger one-bedrooms at $2, 112, plus a handful of two- and three-bedroom units. The company thinks these prices will work, but the DDDA isn’t convinced. The agency hasn’t outright rejected the idea—Revesco can revise its proposal or seek other funding, like low-income housing tax credits, to shrink the loan it needs. The bigger picture? Denver’s downtown is struggling with empty offices, and turning them into homes is one way to fix that. But not all conversions make financial sense. High costs, risky loans, or unclear demand can sink a project before it even starts. The city wants to help, but it’s also cautious about wasting public money.