The Denver Downtown Development Authority has approved a low-interest loan of $14 million to convert the historic Petroleum Building from office to residential space as the city works to revitalize downtown Denver.
The DDDA board announced Wednesday that it approved funding for conversion of the building at 110 16th St. Plans call for turning 12 floors of vacant office space into 178 new residential units ranging from studios to three-bedroom units.
The project is the 13th approved by the DDDA since applications for funding opened in March. The authority is a voter-approved taxing district that allows the city to use a portion of tax revenue generated downtown for projects in the area.
City officials, business and civic leaders hope to re-energize the downtown, which has struggled to rebound since the COVID-19 pandemic shut down offices and diminished foot traffic for restaurants and other businesses. Office vacancies have remained stubbornly high.
“A vibrant downtown is one that people call home,” Mayor Mike Johnston said in a statement. “If we want our downtown to thrive, we need to think of it not as a place where people go to work, but where they come to live, raise their children, and make memories.”
Converting underused buildings downtown is critical to revitalizing the heart of downtown Denver, said Tim Borst, president of Borst & Co. and co-owner of the Petroleum Building.
“With the help of DDDA funding, state and federal historic tax credits, and our own investment, as well as strong support from the Mayor’s Office, we are thrilled to bring this mid-century modern icon back to life,” Borst said in a statement.
The DDDA funding is expected to cover approximately 20% of the project’s total costs. The loan has a 10-year repayment term. The redevelopment will include a yoga/fitness center, gardening spaces and a penthouse dog park and lounge.
A site development plan for the Petroleum Building has been approved. The city is finalizing building permits. Construction is expected to start by mid-2026.