Magnificent Mile and Fulton Market housing to get boost with more than 1,300 new apartments

The Chicago Plan Commission approved plans to convert a largely vacant Magnificent Mile office building to more than 300 apartments Thursday as commission members and the developer expressed support for more adaptive reuse projects to revitalize office buildings in the city.

The commission also approved a 1,000-plus unit apartment project near Fulton Market, a burgeoning residential area as new construction momentum continues to accelerate in the West Loop. That project would include a 43-story tower and a 37-story tower.

The Mag Mile office, at 500 N. Michigan Ave., would largely be converted into 320 apartments under plans by Connecticut-based Commonwealth Development Partners. The office tower’s ground and second floors would remain as retail.

Commonwealth Development will make 20% of the units available under the city’s Affordable Requirements Ordinance. Most of those 64 apartments would be affordable to those making 60% of the area median income, which is $53,820 annually for a two-person household.

The building, like many other office towers in the city, has struggled with occupancy since the pandemic. It’s currently only 30% leased, said Katriina McGuire, a lawyer from Thompson Coburn working with Commonwealth Development.

“It is certainly ripe for reuse,” McGuire said of the building.

The lower floors of the building would include resident amenities, like a fitness center, co-working space and a clubhouse. The roof deck would have outdoor dining space and a bar for residents.

GREC Architects’ Evan Bartlett said the building is set up nicely for conversion. Most of the work for the project would be interior.

“We're interested in keeping this building as is,” Bartlett said. “We're interested in the architecture; we're interested in the history of it. We're not looking to really change that in any way.”

The building’s conversion could be done in phases depending on tenants' wishes to remain, said Matt Faris, co-founder of Commonwealth Development.

Faris said his company is “definitely looking for other deals” in Chicago. The window line and rectangular shape of 500 N. Michigan Ave. will make the building easy to convert, though other office buildings in Chicago might not be as straightforward.

As some companies move from downtown to the West Loop, Faris said there are many opportunities for the city to work with developers on additional conversion projects.

“I think Chicago's had its struggles,” Faris said when asked about opportunities to turn a profit in Chicago. “But we believe in urban development. We think Chicago's not going anywhere. … We feel very good about the project, and we're well capitalized, and we're looking to make it happen.”

Department of Planning and Development Commissioner Ciere Boatright called the development “exciting” in addition to four conversion projects along the La Salle Street corridor that will create 1,000 units.

“I think it's a big deal and a great complement to some of the other projects that we've supported along La Salle,” Boatright said.

If approved by the City Council, Commonwealth Development hopes to start work in spring or summer 2025.

1200 W. Fulton

The Plan Commission also approved two new towers near Fulton Market, which would add more than 1,000 apartments to the fast-growing neighborhood.

The project at 1200 W. Fulton St. would ideally be developed by JDL Development and Fulton St. Companies in one phase. But if the developers have to split the project in half, the site’s larger portion, with a 37-story, 465-foot building, would go up first. The second phase would be on the smaller portion of the site, but house the taller tower, which would be 43 stories. Each would deliver more than 500 units, for a total of 1,079 apartments.

The massive mixed-use project at West Fulton Street and North Racine Avenue, which still needs City Council approval, would include a 90,000-square-foot fitness studio operated by an unnamed tenant. It also includes 440 parking spaces, more than 1,000 bike spaces, an outdoor plaza and an abundance of additional commercial space. Both towers would sit on top of parking.

Local design firm Hartshorne Plunkard Architecture took inspiration from nearby buildings in the district with its light masonry and dark accents.

The 216 affordable units would be built on site. Units would be affordable to residents at a weighted average of 60% area median income — $53,820 annually for a two-person household.

Apartments would range from studios to two-bedroom units.