In a significant pivot for a high-profile Vancouver development, the nearly complete 28-storey tower at 2538 Birch Street is set to be sold and transformed from a market-rental building into a specialized medical travel lodge. The project's original developer, Jameson Development Corp., has agreed to a $235 million sale to the First Peoples Group, an Indigenous advocacy firm.
From Financial Pressure to a New Purpose
The tower, located on West Broadway at the site of a former Denny's restaurant, was initially intended to provide much-needed market rental housing. Despite receiving a low-cost provincial loan in 2023, Jameson Development Corp. encountered financial difficulties. The company placed the project under creditor protection, leading to the sale agreement announced in late 2025.
The new owner, First Peoples Group, plans to convert 200 of the building's units into hotel-like accommodations. These will serve Indigenous patients and their families traveling to Vancouver for medical treatment. "Priority will be given to First Nations Health Authority patient travel programs, but it will be open to other medical travellers as well," stated George Morrison of the FP Group.
A Lodge Designed for Healing and Community
The facility will be known as the First People’s Patient Travel Lodge and will be operated by the non-profit Dunna’eh House of Healing. Morrison described plans for a "community centre feel" that goes beyond simple lodging.
The lodge will feature on-site nurses and services addressing a range of health needs, including mental and dental care. It will also offer drop-in child care for parents undergoing treatment and programs focused on food security. Nightly rates are expected to be set within predictable ranges, likely between $325 to $365 per night, aligned with the First Nations Health Authority's programs.
"There has been a struggle for many years for our First Nation patient travellers," Morrison explained. "We saw some from the Yukon and across B.C. trying to find hotels and other places to stay, and rates that were sometimes going to $750 a night."
A Shift Reflecting Broader Market Trends
This dramatic conversion comes at a time when Vancouver's rental market dynamics are shifting. The sale and repurposing of the project coincide with an increase in the completion of purpose-built rental buildings while demand for such units is softening. Analysts point to factors like reduced immigration levels, new restrictions on international students, and a weaker overall economy.
To facilitate the change, Jameson Development has approached the City of Vancouver with a proposal to amend the project's rezoning bylaw. The amendment would formally allow the 200 hotel-like units in place of the 200 market-rental units originally approved. First Peoples Group has already been collaborating with Jameson for the past six months to customize rooms and spaces during the final stages of construction.
The transformation of 2538 Birch Street from a contested rental tower into a dedicated medical lodge highlights the evolving needs and economic pressures within Vancouver's urban landscape, turning a project born from financial strain into one aimed at addressing a critical gap in healthcare support services.
