Chicago Completes First Loop Conversion as City Backs Five More Office-to-Residential Towers
Chicago opened its first office-to-residential conversion in the Loop earlier this month, a 14-story building now called the Bellwether with 117 mixed-income units. Developer R2 converted 11 floors of the 121-year-old Rector building using $28 million in tax increment financing from the city and $7.8 million in federal historic tax credits. Forty-one of the units are reserved for households earning 60% of area median income. City officials gathered downtown to mark the completion.
Chicago’s Department of Planning Development expects five more office conversions under its LaSalle Street Reimagined initiative, which aims to create 1,765 mixed-income units from vacant downtown office space. The program addresses both an affordable housing shortage and record-high Loop office vacancies driven by post-pandemic work habits. Outside city-backed projects, nearly two dozen private office conversions are in the pipeline, expected to produce close to 4,000 residential units.
Chicago ranks third nationally for office-to-residential conversions behind New York and Washington, according to RentCafe. Commissioner Ciere Boatright said the Bellwether represents a new model for downtown conversions. Developer Gary Stoltz said the project reflects a belief that the Loop’s future depends on a mix of residents, workers, and visitors rather than a single-use office district.
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