Developer Asher Luzzatto will receive a $63 million low-interest loan for an ambitious plan to convert two aging office buildings in downtown Denver into a major residential and community hub.
The High Fidelity Plaza project aims to turn 1 million square feet of commercial office space into 700 apartment units, plus a bodega, coffee shop, children’s museum, child care center and bookstore.
The Downtown Denver Development Authority approved the low-interest loan at its meeting Wednesday.
Luzzatto bought the pair of towers at 621 and 633 17th St. for just $3.2 million, a fraction of what they were once worth. They previously were known as the First Interstate towers.
The DDDA loan would cover only a portion of the costs. He estimates he’ll need $315 million in total for the conversion.
Luzzatto, who once ran for mayor of Los Angeles, has made a splash in Denver with his big ideas. He recently opened the 30th floor of one of the towers for an ethereal art party.
"We are grateful for this public support and are committed to being good stewards of the property, the project and the public funds being made available to us,” he said in a written statement. “We look forward to the day when High Fidelity Plaza is full of life and a blueprint for other transformative projects in Downtown Denver.”
At least 70 of the residential units would be designated affordable.
The DDDA is a city-affiliated body that collects property tax revenues in the downtown area. Voters recently authorized the authority to take out $570 million in debt, to be financed by those tax dollars. It has approved $242 million in funding for a variety of projects.
Revitalizing vacant offices has been a priority for the city and the authority. Nearly 40% of downtown office space remains vacant, years after the pandemic cleared out offices. The city’s office market has recovered more slowly than in other cities.
Its board of directors is largely appointed by Mayor Mike Johnston.
