$130M HUD Loan Helps Advance Historic VA Hospital Redevelopment
DENVER, CO — Plans to redevelop Denver's former Veterans Administration Hospital continue to move forward after the project secured a $130 million HUD-backed construction loan, helping advance one of the city's largest adaptive reuse developments.
Historic VA Hospital Concept Design | Rendering by OZ Architecture
The financing was arranged by Walker & Dunlop on behalf of Denver-based GM Development and will support the transformation of the historic hospital campus at 1055 N. Clermont Street into a mixed-use community featuring 493 apartment units, more than 50,000 square feet of retail and medical office space, publicly accessible open space, and the preservation of the site's iconic 10-story hospital building.
According to Walker & Dunlop, the financing package represents the largest HUD 221(d)(4) construction loan in the company's history. Located in Denver's Hale neighborhood adjacent to Rose Medical Center and the 9+CO redevelopment, the project centers on the adaptive reuse of the former VA Hospital building, which has remained largely vacant since Veterans Affairs operations relocated to Aurora.
Plans call for converting the historic structure into housing while activating portions of the building with retail, medical office, and commercial uses. Approximately 8% of the apartments are planned as income-restricted housing for households earning up to 60% of the area median income.
Historic VA Hospital Concept Design | Rendering by OZ Architecture
The redevelopment will also preserve the site's existing parking structure and introduce new public open spaces, landscaped courtyards, and pedestrian connections designed to improve access throughout the property and surrounding neighborhood. According to city planning documents, the redevelopment vision includes publicly accessible pathways linking East 9th Avenue, East 11th Avenue, Bellaire Street, and Clermont Street.
While the current financing supports the adaptive reuse of the hospital building, the broader vision for the 8.3-acre property extends beyond the initial phase. Planning documents submitted to the City of Denver outline a long-term redevelopment concept that could ultimately include additional residential buildings, retail space, office uses, hospitality components, structured parking, and expanded open space surrounding the preserved hospital building. Earlier concept plans envisioned as many as 1,592 residential units across the full site buildout.
The property was acquired by GM Development through a federal auction process and has been undergoing planning and entitlement review for several years. During community meetings, project representatives emphasized preserving the original hospital building while creating new housing opportunities and publicly accessible spaces on the site.
Development Team
Developer: GM Development
Architect: OZ Architecture
Civil Engineer: Kimley-Horn
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All project information was sourced from publicly available site plans, renderings, and permitting documents.
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