DENVER — Walker & Dunlop has arranged $130 million in financing to fund the mixed-use redevelopment of a former Veterans Affairs (VA) hospital campus in Denver. GM Development, a locally based urban infill development firm, is the borrower.
Chris Rumu, Jason Silva, Cole Parker and Mike Valucci of Walker & Dunlop arranged the financing through the U.S. Department of Housing and Urban Development (HUD) 221(d)(4) loan program. This marks the largest HUD 221(d)(4) loan in the company’s history. (The 221(d)(4) loan product is HUD’s construction-to-permanent financing program that funds the construction or heavy renovation of apartment communities with five or more units.)
Situated in the historic Hale neighborhood of Denver, the project will transform a historic 10-story building and eight-level parking garage. The project’s capital stack includes historic tax credits.
Upon completion, the redevelopment will feature 493 multifamily units, with roughly 8 percent of units designated as income-restricted. Additionally, the development will include more than 50,000 square feet of retail and medical office space.
The 8.2-acre site is located roughly three miles from downtown Denver and is adjacent to the 9+CO master-planned district. GM Development acquired the property in 2022.
“We’re excited to transform this historic site into a vibrant mixed-use community that will help revitalize the surrounding neighborhood and activate a long-underutilized property,” says Sam Edelson, principal at GM Development. “By preserving and repositioning this landmark asset, we’re creating a place that blends history with modern living.”
— Hayden Spiess