CHICAGO— Today, Mayor Brandon Johnson joined Department of Planning and Development Commissioner Ciere Boatright and Commonwealth Development Partners to break ground on the conversion of 500 N.
Michigan Ave., a $162 million office-to-residential project that will create 320 new homes in the heart of downtown.
“Chicago's downtown continues to evolve, and projects like this demonstrate how we can create more housing by reimagining existing buildings,” said Mayor Brandon Johnson. “By converting underutilized office space into hundreds of new homes, including affordable units, we're creating new opportunities for people to live downtown while supporting a vibrant mixed-use district that benefits residents, workers, businesses, and visitors alike.”
The $162 million project will rehabilitate and repurpose the interior of the 25-story building, transforming underutilized office space into 320 residential units, including 256 market-rate residences and 64 affordable units.
Retail and commercial uses will remain on the lower floors, along with 68 below-grade parking spaces.
“Office-to-residential conversions are driving downtown investment and supporting a healthy mixed-use environment,”DPD Commissioner Ciere Boatright said. “The project at 500 N.
Michigan underscores this trend in the heart of the Magnificent Mile.”
The project's amended Planned Development zoning designation was approved by the Chicago Plan Commission and City Council in October 2024, helping pave the way for the conversion.
The project also includes a $284,282 Neighborhood Opportunity Bonus System payment and utilizes the City's recently updated minimum floor area guidelines, which help facilitate office-to-residential conversion projects in Chicago's highest-density zoning districts.
Additional improvements include a green roof, new outdoor lighting, enhanced landscaping, and upgraded stair access to lower Michigan Avenue.
As of July 2026, the development is one of 26 office-to-residential conversion projects underway in downtown Chicago, more than the total number of conversion projects completed during the previous 20 years combined. Collectively, these projects represent $1.8 billion in investment and more than 4,000 residential units.