CHICAGO — McHugh Construction has commenced the office-to-residential conversion of Wacker Place, a 25-story, 248,000-square-foot art deco tower at 65 E. Wacker Place in downtown Chicago. Mavrek Development and partner ACRES Capital LLC recently closed more than $90 million in financing to launch the project. Pappageorge Haymes Partners is the architect, and Cross Street will oversee residential leasing.
Originally built in 1928 as the Millinery Mart Building, the property will be transformed into 252 apartment units across floors 4-24. McHugh is currently overseeing demolition and structural work to prepare for the residential layouts, building systems and amenity spaces. Floors 1-3 will house a reimagined lobby and building services area while maintaining retail tenant Morton’s The Steakhouse, which occupies space at street level and part of the second floor.
Upon completion, Wacker Place will offer a mix of 105 studios, 105 one-bedroom and 42 two-bedroom units. In compliance with Chicago’s Affordable Requirements Ordinance, the project will include 51 affordable housing units offered at a weighted average of 60 percent of the area median income. No parking is planned for the building, which has a Walk Score of 100 and is located steps from multiple transit lines.
Amenities will include a third-floor coworking and fireside lounge, fitness center and an indoor-outdoor rooftop deck on the 25th floor. Each residential floor will feature approximately 12 apartments with units ranging from around 450 to 900 square feet.
McHugh is coordinating design-build work to install new plumbing, electrical, HVAC and fire protection systems. The project team is restoring the building’s historic façade, including removal, replication and reinstallation of terra cotta ornamentation in compliance with National Park Service preservation guidelines.
The development team secured financing through a $62.4 million senior loan from Derby Lane Partners, an $11 million loan from Hoyne Savings Bank and $17 million in federal and Illinois historic tax credits monetized by PNC Bank.
The first residences on floors 4-12 are expected to deliver in summer 2026, with phased occupancy continuing through the end of the year.