Nearly two years after buying a motel in northeast Denver for $9 million, the city is listing it for sale at just $10 — although there’s a reason for the steep discount.
The city bought the partially renovated site in 2023, with plans to make it into transitional housing. The plan was to open the building and its 95 guest rooms to people exiting homelessness by the end of 2023.
But the city’s plan stalled, and the four-floor Stay Inn remains unused and empty to this day.
Now, city officials want to sell the property to an organization that can complete the mission and turn the site into transitional housing.
So, what happened?
The city originally got $2 million of federal funding from Housing and Urban Development to help make the purchase. Most of the rooms had recently been remodeled with kitchenettes, a fire sprinkler system, laundry and more.
Julia Marvin, a spokesperson for the Denver Department of Housing Stability, said that a private entity would be better equipped to transform the property.
“We are looking for a partner who is well-equipped to handle the complexities of renovations, managing the project, and operating it as supportive housing,” she said in an email.
The city recently put the property on sale for $10, a price point that would entice prospective buyers, according to Marvin.
“The selected partner will need to fund the acquisition, all due diligence prior to closing, and renovations/maintenance (expected to be around $5 million), so a sales price of $10 makes this project much more financially viable,” Marvin wrote.
The city said it was unable to disclose the number of applications it received to purchase the hotel. Those are now under review.
Whoever buys the property will have to agree to keep it as transitional housing for 99 years. It could be offered to veterans, families, individuals or couples.
Any proposed sale would have to be approved by Denver City Council.
Plans for the property go far back to at least 2021. U.S. Rep. Diana DeGette said she wanted to buy the property using a mix of city and federal funds and convert it into supportive housing for people experiencing homelessness. That plan, however, stalled due to budget negotiations in Congress.
