CHICAGO — JLL has arranged approximately $113 million in construction financing and joint venture equity for an office-to-residential conversion project located along downtown Chicago’s “Magnificent Mile” corridor.
The sponsor, Commonwealth Development Partners, purchased the 25-story office building at 500 N. Michigan Ave. in August 2025 in partnership with Triangle Capital Group. That deal traded off-market and fetched a sales price of $5 million. Commonwealth is now in the process of converting the building into a 320-unit apartment community. Construction on the redevelopment began in May and is slated for a spring 2028 completion.
The financing package consists of a $71.5 million nonrecourse construction loan from Santander Bank and $41.8 million in joint venture equity that was provided by Washington Capital Management on behalf of one of its institutional clients. Chris Knight, Ryan Planek and Annie Thomas of JLL secured both components of the package on behalf of Commonwealth.
Upon completion, the adaptive reuse project will feature studio, one- and two-bedroom units, 64 of which will be designated as affordable housing. The development will offer amenities such as a rooftop pool, fitness center with a yoga room, coworking space, a multi-sport simulator, theater and concierge services.
Residents at 500 N. Michigan Ave. will also have access to onsite parking and ground-floor retail space, which sold this past spring for $41 million. Tenants of the retail portion include Bank of America, Chick-fil-A and Vans.
“500 North Michigan Avenue presents a rare opportunity to create an outstanding adaptive reuse project in one of Chicago’s most coveted and supply-constrained locations,” says Knight. “The combination of an experienced sponsor with proven conversion expertise, a premier Michigan Avenue address, attractive basis and nation-leading multifamily fundamentals create a tremendous investment opportunity for this new partnership.”
— Taylor Williams