Downtown Denver office towers to be converted into affordable housing, retail spaces

A major transformation is coming to Downtown Denver as plans move forward to turn two office towers on 17th Street into housing units, a dire need in a tight housing market.

It's more than just revitalizing downtown; with 27% of commercial office space sitting vacant and housing costs on the rise, the city is looking to repurpose what's already built. The two buildings, located at 621 and 633 17th Street, were recently purchased by the Luzzatto Company for $3.2 million with plans to convert them into approximately 750 affordable units over the next few years.

"It's an unprecedented opportunity for reimagining downtown generally and office buildings in particular," said Asher Luzzatto, President of Luzzatto Company.    

The location is key; transit stops are right outside, and the plan includes outdoor amenities, retail space and community areas like cafés and markets. Luzzatto said the goal is to bring dynamism to this block so that it fills with life rather than pushes it away.

The pandemic took a toll on downtown, causing property values to drop significantly. Just about 20 years ago, these buildings were worth more than $100 million, a striking contrast to today's sale price.

"We are sitting at a historic high for Denver, at least within the last, let's say, 30 years," said Downtown Denver Partnership CEO Kourtny Garrett. "We see this tremendous opportunity to convert the space, think about reuse, and also continue to attract companies."

The renovations could cost up to $200 million. Construction is scheduled to begin sometime next year, pending permits.