The Barth Hotel in Denver will apparently not be turning back into a hotel.
Instead, a plan to convert the vacant building into affordable housing for seniors is set for a $6 million boost.
It’s the latest project to receive a low-interest loan from the Denver Downtown Development Authority — and the apparent end to a disagreement between two developers vying to decide its fate.
The Barth, built in 1882, is two blocks from Union Station at 17th and Blake streets. It served for decades as an assisted living facility but closed in 2024 amid elevator problems.
One of Denver’s most prominent developers, Walter Isenberg, hoped to buy the building and restore it as a hotel. But another well-known builder, Susan Powers, wanted to buy it for a senior housing project. There were threats of a lawsuit by Isenberg.
“I think it’s a good story about partnership and commitment to downtown and people’s compromises when they get into these situations,” said Powers, president of Urban Ventures, in an interview Wednesday.
What was the fight all about?
Isenberg has held the legal right to buy the building for decades. But his plan could only happen if city officials removed affordability requirements from the building.
His company, Sage Hospitality, threatened to sue the city, arguing that officials interfered with his company’s interest in the property when they struck a deal to put an affordable housing covenant on the building.
Now, the Powers plan looks like it’s moving ahead. The development authority board approved the low-interest loan Tuesday.
“Walter and I, on behalf of Eaton, have come to an agreement in principle on how we’re going to proceed with this,” Powers said. “We’re finalizing that tomorrow.”
She said she couldn’t share the details of the deal with Isenberg just yet. Isenberg wasn’t immediately available for comment.
A $22 million project
It’s the 15th project to receive funding from the authority, a tax-supported body that is distributing nearly $600 million in grants and loans for downtown projects. It has already approved more than $170 million in support for various projects.
Powers and the nonprofit Eaton Senior Communities applied for the money in April 2025. They estimated the project could cost $22 million in all. The developers will also apply for 9-percent tax credits from the Colorado Housing and Finance Authority, as well as state and federal tax credits, for historic preservation.
The project will convert the old design — small rooms and shared bathrooms — to larger studio layouts with private bathrooms and kitchens.
The renovated building will include 50 residential units. They’ll be rented to older people making between 30-50 percent of the area median income. That’s currently a maximum of $56,000 of income for a family of two.
The building’s sale hasn’t yet been completed, according to property records. The current owners asked $2.5 million for it.
