Commonwealth Development Partners Breaks Ground on $162M Office-to-Residential Conversion

• Construction has begun on the $162 million conversion of 500 N. Michigan Avenue into a 320-unit residential community in downtown Chicago.
• The project will transform a 25-story office building into 256 market-rate apartments and 64 affordable units, while retaining retail and commercial space.
• Developed by Commonwealth Development Partners, the project is one of 26 office-to-residential conversions currently underway in downtown Chicago.

What Is Planned for 500 N. Michigan Avenue

Construction is officially underway on the redevelopment of 500 N. Michigan Avenue, where an underutilized office building is being transformed into a mixed-use residential community in the heart of downtown Chicago. The $162 million adaptive reuse project will convert the building's 25 stories into 320 apartments, including 256 market-rate residences and 64 affordable housing units. Existing retail and commercial uses on the lower floors will remain in place, along with 68 below-grade parking spaces.

What the Redevelopment Includes

Beyond the residential conversion, the project will introduce several building upgrades designed to modernize the property and improve the surrounding streetscape. Plans include a green roof, new outdoor lighting, enhanced landscaping, and improved stair access connecting the building to Lower Michigan Avenue. The project also incorporates a Neighborhood Opportunity Bonus System contribution totaling $284,282, supporting additional neighborhood investments throughout Chicago.

What This Means for Downtown Chicago

The redevelopment is part of Chicago's broader strategy to revitalize its downtown by converting aging office buildings into residential communities. As office demand continues to evolve, adaptive reuse projects like 500 N. Michigan are helping increase housing supply while supporting a more vibrant mixed-use district. According to the City of Chicago, there are currently 26 office-to-residential conversion projects underway downtown, representing approximately $1.8 billion in investment and more than 4,000 planned residential units—more than the total number completed over the previous two decades combined.

What Comes Next

With construction now underway, crews will begin the interior rehabilitation of the existing office tower while preserving its commercial components. Once completed, the project will deliver hundreds of new homes along the Magnificent Mile, expand downtown housing options, and continue Chicago's growing momentum in adaptive reuse development.