VCDC teams up with Clifton Forge to transform historic railroad treasure into new hotel
VCDC is excited to welcome the Clifton Forge Yard Office project into our portfolio.
With the Town of Clifton Forge
July 2026 —The Town of Clifton Forge is entering an exciting, pivotal moment for restoration and transformation in a new partnership with VCDC.
This historic town that sits at the foothills of the Appalachian Mountains in Alleghany County, VA, is known for its breathtaking mountain views, arts and crafts scene, and thrilling outdoor activities. Despite all it has to offer -- Clifton Forge and the larger region have historically relied on manufacturing, rail, and resource-based industries -- many of which have been in decline.
Because of this decline, the region has experienced persistent economic headwinds. A declining population, workforce shrinkage, and limited diversification of the local economy contribute to the town's struggles.
In recent years, Clifton Forge began engaging residents through planning efforts to revitalize its downtown, preserve its historic assets, enhance its lodging options, and strengthen its tourism industry. They realized that the region needed to leverage its built and natural assets to create new types of economic opportunity and attract visitors while supporting local businesses and retaining talent.
That’s where VCDC comes into play. In 2026, we partnered with local leaders in Clifton Forge to help realize this vision through a new rehabilitation project: The Clifton Forge Yard Office.
Earlier this year, the town purchased the historic 17,000 sqft yard office building from CSX after being unavailable to the public for years. The Greek-revival style building dates to 1906, when it originally served as a depot for the Chesapeake & Ohio Railway. Today, the building is a prominent local landmark that the town plans to transform into a boutique hotel with a restaurant. Clifton Forge is currently a stop on Amtrak’s Cardinal Line, connecting to cities like Washington D.C., New York, and Chicago. The transformation of this historic railroad building into a hotel serves as an exciting opportunity to bring in Amtrak travelers looking to wind down in a scenic Virginia town and experience the charms of the Alleghany Highlands.
In June 2026, our lending arm, VCDC Community Lenders, provided the town with a $500,000 low-interest loan to cover the acquisition cost to purchase the building. This loan also contributes to the cost of pre-development work that will stabilize the building and prepare it for construction. This type of alternative, low-cost financing is often hard to come by, especially in smaller towns where traditional banking is not available or too expensive for local developers to justify.
In addition, our development arm, VCDC Development Works, has been hired by the town to provide critical development advisory services ensuring that this rehabilitation project is successful. This work will include:
Assembling and managing the project team of third-party contractors, including environmental, appraisal, historic, and architectural
Identification of financing options, applications for financing, management of relationships with funders and tax credit investors
Identification of potential tenants and hotel operator
Negotiation with General Contractor on pricing, scope and schedule
Preparing project for construction
The partnership between VCDC Development Works and the Town of Clifton Forge for this and future development projects has been generously supported by the Alleghany Foundation, which shares our goal to uplift local agencies and developers by supporting their visions for revitalizing Alleghany County.
The Clifton Forge historic Yard Office building is one of the region’s most historically significant and visible assets. Its adaptive reuse into a boutique hotel and restaurant will truly transform this community and create an exciting new space for locals and visitors to enjoy the town. VCDC is excited to be a part of this project, and we look forward to helping this project grow into a catalyst for further economic development and business growth in Clifton Forge.