A groundbreaking has been held for the residential conversion of the existing high-rise at 500 North Michigan Avenue within the Magnificent Mile area. Sitting at the intersection with the lower portion of East Illinois Street, plans for the tower’s pivot have been in the works for nearly two years and received approval from the city in late 2024.
Site plan of 500 N Michigan Avenue by GREC Architects
500 N Michigan Avenue, prior to renovation via Google Maps
Led by Commonwealth Development, the 24-story and 304-foot-tall tower will retain its almost fully leased retail use on the lower two levels. The nearly 21,500 square feet of commercial space was sold separately for $41 million this past April. Floors three through five will remain office space, with other major tenants like the Italian Consulate announcing their relocation.
Parking level plan of 500 N Michigan Avenue by GREC Architects
Ground floor plan of 500 N Michigan Avenue by GREC Architects
The remaining upper levels will be converted into 320 residential units, of which 64 will be affordable. The building will be aimed at young professionals in the area as well as students from various nearby institutions; thus, 80 percent of the units will be studios and one-bedroom layouts, per Block Club, with the rest being two-bedroom layouts.
Residential floor plan of 500 N Michigan Avenue by GREC Architects
24th floor plan of 500 N Michigan Avenue by GREC Architects
Capping this will be a new rooftop addition, as well as the removal of some mechanical spaces in order to create a large amenity area and rooftop pool. Additionally, 68 parking spaces will remain available on the lower floors through a valet service. Construction is now underway as leases end, with an 18-month timeline and an early 2028 completion.
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All through downtown, particularly the Loop, these partial conversions of office to residential are happening, and I think this is a good thing. More people living downtown, buildings get a new life, and simultaneously we will see a gradual reduction in office vacancy rates, which is good for office landlords.
Additionally, more residents will generally help to increase retail and other services which should fill in some of the empty store fronts.
Love seeing this and getting further away from the silly zoning designation of a central business district. That was always going to create a very fragile mono culture of real estate.
Yea, good news!
It seems like we’re seeing a lot more projects break ground this year, rather than just get entitled. It would be fascinating to see an article on that.
Does anyone know how many buildings are proposed, approved and actually in the process and converting from office space to residential? How many millions of square feet will be removed from the office space and how many thousands of residents will be added?