320 Apartments Are Coming to Michigan Avenue. A $162 Million Office Conversion Just Reached a Major Milestone

STREETERVILLE, CHICAGO—One of the Magnificent Mile's longtime office buildings is moving closer to becoming hundreds of new Downtown apartments.

A renovation permit was approved on October 16, 2026, for the $162 million conversion of 500 N. Michigan Avenue, an existing office tower being transformed into 320 rental apartments, including 64 affordable units.

The redevelopment is already underway following a July groundbreaking. The latest permit marks another step toward turning underused office space into housing in one of Chicago's busiest shopping and employment districts.

It also reflects a larger change happening Downtown: Chicago is finding new residential uses for office buildings that no longer serve their original purpose.

What's Planned for 500 N. Michigan Avenue?

Developed by Commonwealth Development Partners and designed by GREC Architects, the project will transform a 24-story office tower built in 1968 into a modern residential community.

The development includes:

320 apartments: A mix of studio, one-bedroom and two-bedroom layouts.
64 affordable apartments: Approximately 20% of the total homes.
256 market-rate apartments: Providing additional rental options in Streeterville.
Rooftop amenities: Plans include a rooftop pool and outdoor gathering space.
Residential facilities: Fitness areas, coworking spaces, a theater and other amenities.
Ground-floor retail: Existing commercial uses will remain part of the property.

The redevelopment also includes a new rooftop addition and improvements to the existing building's interior, elevators and residential facilities.

Rather than demolishing the structure and constructing an entirely new tower, the project will reuse much of the existing building while introducing a different purpose for its upper floors.

What Does the New Permit Mean for Construction?

The project received City Council approval in October 2024, followed by interior demolition permitting and a ceremonial groundbreaking in July 2026.

The latest renovation permit represents another important construction milestone, allowing the approved residential buildout to advance.

Construction is being handled by Skender, with significant interior renovation work planned throughout the property.

Earlier project announcements targeted completion in late 2027. However, a September 2026 financing announcement identified March 2028 as the expected completion date.

That timeline remains subject to construction progress and potential scheduling changes.

Importantly, these apartments are still under development. Final rental prices, leasing availability and move-in dates should be confirmed closer to completion.

Why This Location Matters for Downtown Chicago Living

The building sits at Michigan Avenue and Illinois Street, placing future residents in the heart of the Magnificent Mile and Streeterville.

Its location offers access to several major parts of Downtown Chicago:

Magnificent Mile: Shopping, restaurants, hotels and entertainment.
Streeterville: Nearby residential buildings, hospitals and medical facilities.
Chicago River: Riverfront destinations and connections toward the Loop.
Public transportation: CTA buses and nearby rail connections.
River North: Restaurants, nightlife and additional Downtown amenities.

For residents working at nearby hospitals, offices or educational institutions, the location could offer a more walkable daily routine.

Additional residents may also help support nearby restaurants, shops and services that have historically relied heavily on office workers and visitors.

However, the project does not guarantee changes in surrounding property values or retail performance. Its most direct impact will be adding housing to an established Downtown commercial corridor.

Explore Your Options for Living in Downtown Chicago

From new apartments in Streeterville to established condos in the South Loop, River North, West Loop and surrounding neighborhoods, Downtown Chicago offers different housing options for renters and buyers.

The Cory Tanzer Group at Option Premier helps clients compare neighborhoods, understand local market conditions and navigate the Chicago real estate market.

Considering a move Downtown? Connect with our team for local insight into available homes, neighborhood differences and opportunities throughout Chicago.

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