Historic 1950s Denver VA Hospital To Become Mixed-Use Community That Will Include Medical Office Space

Walker & Dunlop, Inc. has secured $130 million in financing for the redevelopment of a historic former Veterans Affairs hospital campus in Denver.

1055 N Clermont.(PHOTO CREDIT: GM Development)

The 8.22-acre site, located at the northwest corner of East 9th Avenue and Clermont Street, will be transformed into a 493-unit Class A mixed-use community at 1055 North Clermont Street.

The financing was arranged through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan program and marks the largest 221(d)(4) construction loan in the company’s history.

Chris Rumul, Jason Silva, Cole Parker, and Mike Valucci of Walker & Dunlop FHA Finance structured the transaction on behalf of GM Development. Historic tax credits were incorporated into the capital stack to support the adaptive reuse of the long-vacant property.

“This milestone transaction highlights the strength of our FHA Finance platform,” said Ken Buchanan. “We’re proud to collaborate with GM Development, the City of Denver, and HUD to preserve this important historic asset while delivering high-quality housing through the HUD 221(d)(4) program and historic tax credits.”

The redevelopment will feature 493 primarily market-rate rental units, with approximately 8% designated as income-restricted at 60% of area median income (AMI). Plans also include the restoration of the historic 10-story building, construction of an eight-level parking garage, and more than 50,000 square feet of retail and medical office space. Of that total, 43,612 square feet will occupy the first floor and garden level, including 12,594 square feet of frontage along East 9th Avenue connected to a central atrium.

“We’re excited to reimagine this historic property as a vibrant mixed-use destination that will help energize the surrounding neighborhood,” said Sam Edelson. “By preserving and repositioning this landmark site, we’re creating a community that combines historic character with modern living. We appreciate the partnership of Walker & Dunlop and HUD in making this vision possible.”

Located in Denver’s Hale neighborhood, the property sits adjacent to the expanding 9+CO master-planned district and directly west of Rose Medical Center. The site offers convenient access to major transportation corridors, including East Colfax Avenue, and is approximately three miles from downtown Denver and 23 miles from Denver International Airport.

Source: Mile High CRE