Streeterville Hotel Set for Residential Conversion at 201 E Walton

Another hotel-to-residential conversion is taking shape in Streeterville, adding to a growing trend across downtown Chicago.

Plans have been revealed to convert the existing hotel at 201 East Walton Place into a 221-unit apartment building. The property, currently operating as Sonesta Extended Stay Suites, will close ahead of construction as part of a redevelopment led by Churchwick Partners.

From Extended-Stay Hotel to Apartments

The 18-story building, originally constructed in the 1950s, sits just steps from the Magnificent Mile and the lakefront. Its current use as an extended-stay hotel actually makes it a strong candidate for conversion.

Unlike traditional hotels, extended-stay layouts already include larger rooms and multi-room configurations, which can more easily translate into residential units.

Plans call for:

110 studio apartments
80 one-bedroom units
31 two-bedroom units

In total, the building will retain its 221-unit count, but shift entirely to long-term residential use.

Design, Financing, and Timeline

Rendering of 201 E Walton Pl by bKL Architecture

After acquiring the property for approximately $3 million, Churchwick Partners secured a $68 million loan to fund the project. The development team has brought on bKL Architecture to lead the redesign of interiors and unit layouts.

The project will move forward in phases:

Zoning approval targeted by fall 2026
Hotel closure expected in December
Construction timeline estimated at around 8 months
Projected completion in mid-2027

Amenities and What Residents Can Expect

Future residents will have access to a mix of modern amenities, including:

A 72-space parking garage (existing)
Fitness center and resident lounge
Co-working space
Dog run
Outdoor terrace areas

These additions are designed to align with current renter expectations, especially in high-demand neighborhoods like Streeterville.

Why This Project Matters

This conversion reflects a larger shift happening across Chicago.

With office and hotel demand fluctuating in recent years, more underutilized properties are being repositioned into housing. In dense areas like Streeterville, where new ground-up development sites are limited, conversions like this are becoming one of the most efficient ways to add inventory.

It also highlights how older buildings can be adapted rather than replaced, especially when their existing layouts support residential use.

Also Read: Hotel Conversion Proposed for Historic Burnham Center in Chicago’s Loop

Stay Connected

Ranked among the top 1% of real estate teams in the Chicagoland market, Cory Tanzer and the Cory Tanzer Group are experts in helping buyers and sellers navigate today’s market across Downtown Chicago, the North Shore, and the Western Suburbs. Recognized for their neighborhood expertise in areas such as University Village, University Commons, South Loop, and Pilsen, the team helps clients stay one step ahead by understanding where the Chicago market is headed next.