The developers who helped revitalize downtown Denver in the ‘90s by bringing affordable housing, retail and offices to the Denver Dry Goods department store building are doing it again – at the same old building, built in 1888.
On Wednesday, Mayor Mike Johnston, developers, financiers and state officials gathered for a “groundbreaking” to celebrate the construction of the project, although no ground was actually broken.
The new Denver Dry Apartments, slated to open in 2027, will add 106 apartments with rent restrictions to the historic building. That’s twice the housing the building has now. The developers also hope to bring new retail to the ground floor.
The project coincides with a downtown-wide effort, led by Mayor Mike Johnston, to bring more housing and retail back to the city center — as offices sit vacant throughout the city center.
And for Denverites who have lived here for decades and watched the ups and downs of the downtown economy, this story is nothing new.
The first revitalization
Back in the ‘80s, the city was in a slump and the powers that be were considering demolishing the Denver Dry Goods Building and turning the land into a parking lot, developer Chuck Perry recalls.
Perry had lived in Colorado for decades, and had grown up visiting the Denver Dry Goods building throughout his childhood.
“I used to come to brunch in the tea room with my great aunt,” Perry said. “This building was always at a very special place in my heart.”
He was troubled the building would be torn down like so many already had been through the ‘70s and ‘80s, as a once vibrant downtown turned into a parking-lot wasteland.
“Federico Peña, bless his heart, went out and raised the money to purchase the building from four local banks, and then he assigned the project to DURA, where I became the project manager,” Perry said.
Burgeoning developer Jonathan Rose decided to work with Perry to bring the building back to life.
“He emphasized that in order to revitalize downtown retail, we needed to create housing downtown for people to live,” Perry said. “That was his vision, and that really was the catalyst for starting this project by including 51 units of affordable housing and financing with a public-private partnership with CHFA.”
The duo put together a funding package that included tax-increment financing, historic tax credits and low-income housing tax credits.
“Those three primary forms of financing allowed us to redevelop this building and to create a model for 20 other buildings within a mile radius of here to redevelop in the same way,” Perry said.
Those included the Rio Grande, Bank Lofts and Mercantile buildings.
In 1994, more than 51 units of affordable housing opened in the former department store. The project was a hit and helped ignite a rebirth of the city center, ushering in the modern heyday of the 16th Street Mall.
For years, the project was a success, said Tracy Huggins, the head of the Denver Urban Renewal Authority.
Then COVID-19 hit, gutting downtown Denver.
“The pandemic took a significant toll on the building, particularly as it pertained to the retail presence,” Huggins said.
T.J. Maxx left. So did Starbucks.
“Recognizing the need to attempt to re-imagine the building, Chuck and Jonathan again came forward and said, ‘We love this building. Let's see if there isn't a new strategy that we can undertake to really retain and maintain its vibrancy and presence downtown.”
Rose and Perry hope the new building brings more residents – and fresh life – to the city center.
Huggins described the new development as the “re-rebirth” of the Denver Dry Goods building.
“I absolutely believe the success of the revitalization of the Denver Dry 30 years ago was the spark that lit the fuse for the revitalization that downtown Denver experienced in the ‘90s and 2000s,” Huggins said.
Boosters hope the building can do it again.
The new apartments will be reserved for people making between 30 percent and 80 percent of the Area Median Income, or between $29,450 and $72,950 for an individual or $37,850 and $93,800 for a family of three.
