Chicago Mayor Moving Ahead on Subsidized Office-to-Resi Projects

Mayor Brandon Johnson is expected to greenlight four office-to-residential projects in downtown Chicago that involve real estate heavyweights like Mike Reschke and Quintin Primo.

The projects, stemming from former mayor Lori Lightfoot’s LaSalle Street Reimagined initiative, will turn outdated office buildings — at 111 West Monroe Street, 208 South LaSalle Street, 30 North LaSalle and 79 West Monroe — into nearly 1,100 apartments, Crain’s reported.

Under this program, developers will receive subsidies in exchange for reserving at least 30 percent of the units as affordable.

The move represents Johnson’s most substantial endeavor yet to inject vitality into the Loop, which has been grappling with record-high office vacancies since the pandemic triggered the remote-work era. With dwindling foot traffic, the area has seen a surge in distressed properties, stifling the city’s urban core.

While praised by advocates as a crucial step toward post-pandemic recovery, the allocation of taxpayer subsidies has faced criticism. Some question whether public resources should be directed towards restoring downtown’s vibrancy.

Despite initial uncertainties following Johnson’s election, his administration is forging ahead with the LaSalle Street initiative. The four selected projects will undergo a city review process, requiring negotiation of redevelopment agreements and approval from various city bodies, including the Chicago Community Development Commission and the City Council.

For 111 West Monroe, Reschke’s Prime Group and Primo’s Capri Investment Group aim to convert the building into a mix of 349 apartments, along with a separate club and hotel. The project, dubbed the Monroe Residences & Hotel, is expected to cost $180 million.

Reschke is also behind the redevelopment of 208 South LaSalle, with plans to convert the five floors of office space above the JW Marriott Chicago hotel into 280 residential units, including 84 set aside as affordable. The estimated cost is $130 million.

A venture of Golub and Corebridge Financial wants to turn the lower portion of the 43-story building at 30 North LaSalle into 349 apartments. That $143 million will yield 105 affordable units.

Lastly, a venture of Campari Group is spearheading the overhaul of 79 West Monroe. Few details have been revealed, although a source familiar with the proposal anticipated that the project will produce roughly 120 units, the outlet reported.

—Quinn Donoghue