Petroleum Building Moves Towards Initial Sitework Amid Tenant Dispute

A set of building permits has been filed this week for the adaptive reuse project at the 1657-built Petroleum Building at 16th Street and Broadway.

General contractor PCL Construction is slated to begin work in the summer of 2027 if the project proceeds on schedule; however, one office tenant is holding out. Recent reports indicate that Paul Sheperd, owner of Venture X coworking and occupant of the 13th and 14th floors of the tower, is maintaining that their lease is valid for ten more years. Speaking before the DDA board on January 27th, Sheperd said Venture X "...remained through COVID, through the prolonged 16th Street Mall construction, which resulted in years of reduced foot traffic and uncertainty.” Building ownership says they have attempted reconciliation, but claims that negotiations have stalled in recent weeks. Data Sourced From: BLDUP, Inc.

Plans for the building do not include retaining any office space, with 12 floors of the 14‑story office tower set to be converted to 178 multifamily units, while preserving ground-floor retail and reimagining the lower and top floors as tenant amenity spaces. Design enhancements will include refreshed multi‑tenant lobbies, updated façade elements, modern building systems, and new indoor community, pet, and common areas that celebrate the building’s mid‑century rise.  The project, designed by Gensler will also modernize building systems, refresh the mid-century façade, and add community gathering areas, pet facilities, and updated lobbies, marking one of the city’s most prominent office-to-residential conversions.

A joint venture comprised of Dellacava Development Company and co-owner Tim Borst of Barrons Commercial is behind the project, which received city approval and a $14 million loan in November of 2025 by the Downtown Development Authority, a significant contribution to the project's estimated total cost of $68 million.