Chicago Construction News staff writer
Construction has begun on the $162-million conversion of a 25-storey office building at 500 N. Michigan Ave. into a 320-unit residential development, adding new housing to downtown Chicago while preserving retail and commercial space on the lower floors.
Skender joined city leaders and project partners to celebrate the start of the adaptive reuse project, a transformative conversion of a 400,000-sq. ft. office tower into 320 residential units on Chicago’s Magnificent Mile.
The conversion, designed by GREC Architects, will transform vacant floors 3 through 23 into 320 residential dwelling units, while a new 25th floor featuring indoor and outdoor amenity space including a rooftop pool will be constructed atop the building, adding 17 feet to its height. Level 24 will house mechanical systems, and floors 2 through 5 will include additional residential amenity programming. Ground-floor retail will be retained, preserving the building’s longstanding role as a Mag Mile landmark.
“Adaptive reuse conversions demand a level of precision, creativity and problem-solving that goes far beyond standard construction,” Skender stated on social media. “We’re proud to partner with Commonwealth Development Partners LLC to breathe new life into this Magnificent Mile landmark and contribute to Chicago’s continued downtown transformation.”
The project will transform underutilized office space into 320 apartments, including 256 market-rate units and 64 affordable homes. The development will also retain retail and commercial uses, along with 68 below-grade parking spaces.
“Chicago’s downtown continues to evolve, and projects like this demonstrate how we can create more housing by reimagining existing buildings,” Mayor Brandon Johnson said in a statement. “By converting underutilized office space into hundreds of new homes, including affordable units, we’re creating new opportunities for people to live downtown while supporting a vibrant mixed-use district that benefits residents, workers, businesses, and visitors alike.”
The $162-million redevelopment will rehabilitate the building’s interior and includes a range of site improvements, including a green roof, upgraded outdoor lighting, enhanced landscaping and improved stair access to lower Michigan Avenue.
Department of Planning and Development Commissioner Ciere Boatright said office-to-residential conversions are helping reshape Chicago’s downtown.
“Office-to-residential conversions are driving downtown investment and supporting a healthy mixed-use environment,” Boatright said. “The project at 500 N. Michigan underscores this trend in the heart of the Magnificent Mile.”
The project’s amended Planned Development zoning designation received approval from the Chicago Plan Commission and City Council in October 2024. The development also includes a $284,282 payment through the city’s Neighborhood Opportunity Bonus System and takes advantage of updated minimum floor area guidelines designed to encourage office-to-residential conversions in Chicago’s highest-density zoning districts.
City officials said the project is one of 26 office-to-residential conversion developments currently underway in downtown Chicago as of July 2026. Together, those projects represent $1.8 billion in investment and more than 4,000 new residential units, more conversion projects than were completed during the previous two decades combined.
