There was a groundbreaking today to kick off work to transform an office building along LaSalle Street into residential housing, a first of its kind for the city.
A redevelopment project is hoping to bring new life to Chicago’s Loop by transforming vacant office spaces into housing.
The city marked a day of celebration as Mayor Brandon Johnson along with other elected leaders held a groundbreaking ceremony for the project at 79 W. Monroe St. to revitalize the LaSalle Street corridor.
“This is an exciting announcement and I’m very proud and humble that we’re collectively here today to ensure the people of Chicago that our status as a global city has not been lost,” Mayor Johnson said.
The project is part of an initiative started by Mayor Lori Lightfoot. The goal is to transform vacant office spaces into housing post pandemic.
Multiple floors of the historic Rector Building will convert into 117 apartment units, 35% of which will be affordable housing.
“This will bring us a significant step closer to providing quality affordable housing for all together. We are redefining the narrative,” Chicago Department of Housing commissioner Lissette Castañeda said.
The $64 million dollar project also includes a fitness center, a lounge and a roof deck.
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“You’ll see the historic façade from across the rebuild Chase Plaza, down the block from the new Google headquarters below the restored Weather Bell on the coroner,” Commissioner Ciere Boatright of the Chicago Department of Planning and Development said.
The city is also looking to redevelop 135 S. LaSalle St., 111 W. Monroe St., 208 S. LaSalle St., and 30 N. LaSalle St.
The push comes as companies shifted to a remote workforce during the pandemic. Data compiled by Chicago based retail brokerage Stone Real Estate show the Loop retail vacancy rate was 29.8% in 2024, slightly down from 30.1% in 2023.
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“While Chicago’s downtown continues to recover since the pandemic, there’s still so much more work we can do to ensure all of our neighborhoods continue to grow through equitable economic initiatives and more affordable housing opportunities,” Johnson said.
Four other projects are in the works but still needs to be approved by city council, with the construction at 79 W. Monroe St. expected to take at least 12-18 months to complete.
