$162M Michigan Avenue Office Conversion Breaks Ground, Adding 320 Downtown Apartments

STREETERVILLE—A major office-to-residential conversion is officially underway on the Magnificent Mile, where vacant office space at 500 N. Michigan Avenue will become 320 apartments.

500 N. Michigan Groundbreaking Skender — 500 N. Michigan Groundbreaking | Skender

The $162 million adaptive reuse project broke ground on July 29, 2026, with completion targeted for late 2027. The development will preserve the building’s ground-floor retail while introducing new housing and residential amenities in one of Chicago’s most recognizable downtown corridors.

Vacant Offices Will Become 320 Apartments

Developed by Commonwealth Development Partners, the project will convert vacant space on floors 3 through 23 into 320 residential units.

The apartment mix will include:

256 market-rate residences
64 affordable residences
A combination of studio, one-bedroom, and two-bedroom layouts

The affordable apartments represent 20% of the building’s units, expanding the range of housing options available near the Magnificent Mile, Streeterville, and the Near North Side.

“By converting underutilized office space into hundreds of new homes, including affordable units, we’re creating new opportunities for people to live downtown,” Mayor Brandon Johnson said during the groundbreaking announcement.

Rooftop Pool and New Residential Amenities Planned

Designed by GREC Architects and constructed by Skender, the redevelopment will add a new 25th floor with indoor and outdoor amenity areas, including a rooftop swimming pool.

The new floor will increase the building’s height by approximately 17 feet. Floor 24 will contain mechanical systems, while additional amenity programming is planned for floors 2 through 5.

Other planned improvements include a green roof, upgraded outdoor lighting, new landscaping, elevator modernization, and improved stair access connecting Michigan Avenue with Lower Michigan Avenue.

Retail and Valet Parking Will Remain

The existing building was originally designed by Skidmore, Owings & Merrill and completed in 1968. The 304-foot, 24-story tower occupies a prominent corner at Michigan Avenue and Illinois Street.

Ground-floor retail will remain in place during and after the conversion, preserving the property’s commercial presence along the Magnificent Mile.

500 N. Michigan GREC Architects — 500 N. Michigan | GREC Architects

The building’s below-grade parking garage will also remain, providing 68 valet parking spaces accessed from Lower Illinois Street. The redevelopment is primarily focused on repurposing the vacant office floors rather than replacing the existing structure.

Part of a Larger Downtown Conversion Trend

The zoning changes needed for the conversion were approved by the Chicago Plan Commission and Chicago City Council in October 2024. The project also includes a $284,282 Neighborhood Opportunity Bonus payment.

As of July 2026, the city reported that 26 office-to-residential projects were underway across Downtown Chicago. Together, those projects represent more than $1.8 billion in investment and over 4,000 planned residential units.

Converting underused offices into apartments could bring more full-time residents, pedestrian activity, and daily spending to downtown business districts while helping existing buildings adapt to changing demand.

What This Means for Downtown Chicago Residents

The 500 N. Michigan project will introduce hundreds of rental homes within walking distance of Michigan Avenue shopping, Streeterville, River North, the Chicago Riverwalk, the lakefront, and several CTA stations.

Rental rates, floor plans, leasing dates, and complete amenity details have not yet been announced. Prospective renters should expect more information as construction approaches the planned late 2027 completion.

Considering a move to Streeterville, River North, or another Downtown Chicago neighborhood? Connect with the Cory Tanzer Group at Option Premier for guidance comparing apartment buildings, condominiums, commute options, amenities, parking, and the everyday lifestyle offered by each downtown community.

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