Denver's Downtown Development Authority has slammed the brakes on public support for converting the 16-story office tower at 475 17th Street, a decision that stalls plans for a hefty batch of new downtown apartments, including a significant slice of income-restricted units. With the funding off the table, the developer is now weighing whether to shrink the project, hunt for different financing, or walk away entirely.
As reported by the Denver Business Journal, the DDA board rejected the request at an April 6 meeting, prompting Revesco Properties to rethink the size and scope of the conversion. The Business Journal's account notes that the move highlights growing scrutiny over how and when the DDA will deploy its new downtown funding.
What Revesco Asked For
Revesco had sought to turn the mostly vacant 16-story tower into housing and asked for roughly $29 million in DDA support to help finance the work, according to BusinessDen. Project estimates have bounced around in filings and reports, from about 140 units to earlier plans showing closer to 200, with a large share intended for households earning 80% of the area's median income.
“The bottom line is the building is close to empty,” a Revesco construction manager told BusinessDen, explaining why the owner has pushed for a conversion. Developers have repeatedly pointed to a stubborn financing gap - driven by construction costs, current interest rates and code upgrades - that makes many downtown office-to-residential projects tough to pull off.
DDA's Wider Play
The DDA, which voters authorized to direct roughly $570 million into downtown, has been choosy about who receives public loans and how big those loans should be, according to reporting by The Denver Gazette. The authority has already signed off on loans for other office conversion contenders, but board members have signaled they intend to move carefully on larger, riskier packages.
What Comes Next
The decision at 475 17th Street underscores the financial tightrope for turning offices into housing. Experts and city planners have warned that costs and building layouts often leave conversions barely workable, even when there is clear demand, as The Colorado Sun has reported. For now, Revesco's proposal is on pause; company and city officials told the Business Journal the developer is reassessing its options and could return with a revised request or pursue other funding sources.
