1055 Clermont | Case Study | Walker & Dunlop

The situation

After closing in 2007, the former VA hospital campus at 1055 N. Clermont in Denver stood vacant for years, its historic buildings and expansive grounds falling into disuse. Despite its location near some of the city’s most established residential neighborhoods, the once-prominent property became increasingly defined by trespassing, crime, and visible signs of blight.

The sponsorship team acquired the site through a public auction and spent nearly two years navigating zoning, entitlement, and redevelopment approvals with the City and County of Denver. Their vision was to transform the dilapidated hospital campus into a Class A mixed-use residential community while preserving the property's historic character.

The redevelopment plans called for 493 apartment units, approximately 50,000 square feet of retail and office space, and an affordable housing component with approximately 8 percent of units restricted for residents earning up to 60 percent of the area median income (AMI).

Financing a redevelopment of this scale was complex. In addition to utilizing historic tax credits, the project required HUD financing on a scale rarely seen in the program. At the same time, the Denver multifamily market was experiencing elevated new supply, requiring extensive underwriting and market analysis to support the transaction.

THE SOLUTION

Walker & Dunlop arranged a nearly $130 million HUD 221(d)(4) construction loan to finance the adaptive reuse and substantial rehabilitation of the property. The financing represents the largest HUD loan completed in Walker & Dunlop's history.

The transaction required extensive collaboration among the sponsorship team, Walker & Dunlop’s underwriting professionals, and the Denver HUD office. Because HUD does not frequently finance projects of this size and complexity, the team worked closely together throughout the approval process to address market concerns, structure the financing, and advance the redevelopment.

Historic tax credits also played a critical role in the capital stack, helping preserve and reposition the large well-located property, while supporting its conversion into modern multifamily housing with mixed-use retail and office space.

The Result

The redevelopment of 1055 N. Clermont will transform a long-vacant property into a vibrant mixed-use community featuring 493 apartment homes, retail space, office space, and affordable housing units.

Beyond delivering new housing supply, the project will reactivate a highly visible site that had remained empty for years, becoming a safety concern for the surrounding neighborhood. Community stakeholders and local residents expressed strong enthusiasm for the redevelopment, recognizing its potential to restore the property as a productive community asset.

The transaction also highlights Walker & Dunlop’s ability to execute highly complex HUD financings involving adaptive reuse, historic preservation, mixed-use development, and large-scale multifamily construction.