$162M Office-to-Resi Conversion Kicks Off in Chicago
The 1968-completed property will become a luxury community.
Commonwealth Development Partners has began the conversion of the office tower at 500 N. Michigan Ave. in Chicago into a 320-unit luxury community. Skender serves as general contractor for the $162 million project, following the designs of GREC Architects. Delivery is expected in 2027.
Originally completed in 1968 and designed by Skidmore, Owings & Merrill, the Magnificent Mile tower rises 24 stories at the corner of North Michigan Avenue and East Illinois Street.
The conversion will entail the demolition of all vacant office spaces and modernization of the elevator system. Upon redevelopment completion, the 400,000-square-foot property will enclose 256 market-rate and 64 affordable units with studio, one- and two-bedroom layouts across floors three through 23. The ground floor will continue to include retail space, while the 24th floor will house the building’s mechanical systems.
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Plans also call for the construction of a 25th floor, which will feature indoor and outdoor amenities such as a rooftop pool. In addition, levels two through five will comprise shared amenity spaces as well. The property will also include 68 below-grade parking spaces, new outdoor lighting and improved landscaping.
The building is two blocks north of Chicago River and the Wrigley Building and within 1 mile north of downtown. Grand metro station on the Red Line is two blocks west.
Chicago office-to-resi conversions hold strong
The redevelopment of 500 N. Michigan Ave. is one of the 26 office-to-residential conversion projects underway in downtown Chicago. These projects, representing a $1.8 billion combined investment, will add more than 4,000 residential units to the city’s inventory.
One of them is nearing completion. Wacker Place, the transformation of the office building at 65 E. Wacker St. into a 252-unit residential tower, started preleasing in June and the first residents are expected to move in this August. Developers Partners Mavrek and ACRES Commercial Realty Corp. obtained $90 million in financing for this project last year.
