Lakeview High-Rise Proposal Moves Forward With Design Changes and Demolition Timeline

Rendering of the proposed 355-unit mixed-use development at Sheridan Road and Diversey Parkway. Credit: Antunovich Associates

CHICAGO - A major Lakeview development proposal is moving into a more visible phase as revised designs and a demolition timeline have been shared for the vacant Stone Medical Center site near Diversey Harbor.

The project is planned for the northwest corner of Sheridan Road and Diversey Parkway, one of Lakeview’s most prominent lakefront-adjacent intersections. If approved, the development would replace the vacant medical building and adjacent parking lot with a new mixed-use residential tower featuring 355 apartments, ground-floor retail, and a large fitness club.

The proposal is still moving through the city’s approval process, but demolition activity is expected to begin soon, making this one of the most important Lakeview development stories to watch in 2026.

Revised Plan for a Key Lakeview Corner

Rendering shows the proposed alley improvements north of Diversey Parkway, including a widened alley, off-street drop-off area and expanded pedestrian space. Credit: Antunovich Associates

The latest design keeps the project at 355 apartments, with approximately 10,000 square feet of retail space and a roughly 50,000-square-foot fitness club on the northern portion of the site.

About 20% of the apartments, or 71 units, would be set aside as affordable housing under Chicago’s Affordable Requirements Ordinance.

The development team has revised the design after months of meetings with neighbors and the 44th Ward office. One of the biggest changes is more pedestrian space. Sidewalks along Sheridan Road and Diversey Parkway would be widened to about 20 feet, creating more room at a busy intersection that already handles significant foot, vehicle, and lakefront traffic.

A spokesperson for Continuum Development said, “The updates to the design of 2800 N. Sheridan reflect community feedback and create a more intimate streetscape at this gateway intersection to Lakeview.”

Additional setbacks would create more open space near the retail frontage, residential lobby, and drop-off area. The revised plan also calls for widening the east-west alley north of Diversey from 14 feet to 22 feet, along with a new off-street drop-off area intended to reduce backups on nearby streets.

For buyers and residents, those changes matter because the debate is not only about height or unit count. It is also about how the building meets the sidewalk and how it affects daily movement through the neighborhood.

Demolition Begins in Phases

The most immediate change will be demolition of the vacant Stone Medical Center.

Site preparation is expected to begin August 3, with construction fencing, removal of a small structure near the alley, and preliminary work. Interior demolition is expected to start August 17.

Large-scale exterior demolition is scheduled to begin after Labor Day, starting September 7. During active work, the alley immediately north of Diversey may close from 8 a.m. to 5 p.m., with traffic control personnel directing vehicles and reopening the alley after work hours.

The nearby vacant lot north of the alley is expected to be used for staging equipment and hauling debris, which should help reduce congestion on surrounding streets. Rodent control measures are also expected before and during demolition.

Why This Proposal Matters for Lakeview

The corner of Sheridan and Diversey sits near Diversey Harbor, the lakefront, Lincoln Park, high-rise residential buildings, bus routes, and one of the main gateways into East Lakeview. Replacing a vacant medical building and parking lot with housing, retail, and fitness uses could bring more activity to a highly visible but underused site.

At the same time, the proposal has raised real neighborhood questions about scale, traffic, design, congestion, parking, and how the new tower would fit into the surrounding Lakeview and Lincoln Park edge.

One longtime nearby resident summed up the balance clearly: “We are not opposed to development. We just want to make it a good building that fits.”

That tension is common with large infill projects in established Chicago neighborhoods. New housing can support demand, improve the street, and activate vacant property, but the details matter. Height, traffic flow, sidewalk space, materials, parking access, and the quality of the ground-floor experience will all shape how the final project is received.

For additional background on the earlier version of this project, read 355-Unit Apartment Tower Proposed Near Diversey Harbor in Lakeview.

What Buyers Should Watch

The revised Lakeview high-rise proposal at 2800 N. Sheridan Road is moving into a more active phase as demolition of the vacant Stone Medical Center prepares to begin.

The plan would bring 355 apartments, 71 affordable units, retail space, a large fitness club, wider sidewalks, expanded setbacks, alley improvements, and a new drop-off area to one of Lakeview’s busiest lakefront-adjacent corners.

For Lakeview, the bigger question is how the final project balances new housing demand with neighborhood scale, traffic, design, and pedestrian experience. With demolition starting soon and city review still ahead, this is a project buyers, renters, and residents should continue watching closely.

Looking to Buy in Lakeview or Near the Lakefront?

Whether you are comparing condos near East Lakeview, Diversey Harbor, Lincoln Park, Wrigleyville, or nearby North Side neighborhoods, the right strategy starts with understanding building quality, location, views, transit, and future development nearby. Connect with The Cory Tanzer Group at Option Premier for expert guidance on finding the right home in Chicago’s most active neighborhood markets.

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