Why Denver wants to buy a state-owned building

May 13, 2026 - 02:43

Denver is moving forward with a plan to purchase a state-owned building for $4.5 million, a deal city officials say could unlock new affordable housing near public transit. The property, located in a central corridor, is currently used for state administrative offices. If the sale goes through, the city intends to redevelop the site into mixed-use housing, with a significant portion of units reserved for lower-income residents.

The proposal comes as Denver grapples with a persistent housing shortage and rising rents. City planners have identified the location as ideal because of its proximity to light rail and bus lines, aligning with the city's goal of building more homes along transit routes. The $4.5 million price tag is considered below market value, reflecting the state's willingness to support local housing efforts.

However, the deal is not final. It requires approval from state lawmakers and a review of the building's condition. Some neighbors have raised concerns about the scale of potential development, while housing advocates argue the city needs to move quickly to secure the site. A city spokesperson said the purchase could eventually yield dozens of affordable units, though timelines for construction remain unclear. The next step is a legislative vote expected later this spring.