“The Chicago Plan Commission on Thursday approved the conversion of the Graphic Arts Building at 1006 South Michigan Avenue in the South Loop from offices to residential use. The project required a change to Business Planned Development No. 1323, which includes the newly-opened 1000M residential tower next door at 1000 South Michigan. All three members of that development team, including JK Equities, Time Equities, and Oak Capitals, are the trio working on the residential conversion. FitzGerald is the design firm for the project.
“The approval allows the developers to build 49 loft-style residential units. Chicago’s ARO regulations require 10 units to be set aside as affordable. Instead, there will be five affordable on-site units, and a $1.29 million payment will be made to the Affordable Housing Opportunity Fund in lieu of the other five units.
“Also known as the Lightner Building, 1006 South Michigan was designed by architect Edmund Krause and completed in 1904. It is a contributing building to the Historic Michigan Boulevard District; since it is an existing building in a Chicago Landmark district, no vehicular parking is required for the renovation. Therefore, no parking will be included, although storage for 50 bicycles will be available on the first floor.
“The application for approval states no changes are being made to the exterior of the building, though the south façade includes gaps and spaces that must be closed to keep the building in compliance with fire codes. The Orange-rated historic façade cannot be brought into full compliance with bird-friendly guidelines, but the lack of rooftop landscaping and breaks/features in the façade, as well as dark-sky compliant exterior light fixtures, will help mitigate bird collisions.
“At Thursday’s Plan Commission meeting, JK Equities Principal Jordan Karlik expressed hope that they can get the residential conversion underway in the first quarter of 2026. The office building currently has an occupancy rate of about 45 percent, and none of the tenants had planned on renewing their leases. He estimates the total cost of the project to be in the $28 to $30 million range.” (Schell, Chicago YIMBY, 3/22/25)
“Nearly a decade after buying a vintage office building across from Grant Park, a pair of New York developers is eyeing a residential conversion.
“A venture of JK Equities and Time Equities, along with Chicago-based Oak Capitals, wants to turn the eight-story Lightner Building into 49 residential units, with retail space on the ground floor.
“Office-to-residential conversions have been a hot topic as downtown office vacancy hits record highs while apartment demand is strong. In addition to the tax-increment financing-backed projects to transform offices on and near LaSalle Street into hundreds of apartments, developers are planning residential conversions at 65 E. Wacker Place, on the Magnificent Mile, and at West Loop warehouses.
“JK and Time paid $10.5 million for the building in April 2015. The venture had recently completed a conversion of a foreclosed warehouse farther south into 59 apartments.
“The Lightner Building is next to the developers’ most high-profile project in Chicago, the newly built 73-story apartment tower at 1000 S. Michigan Ave. The tower, dubbed 1000M, has a cantilever that extends 12 feet over 1006 S. Michigan.
“Built in 1904 and named for the former publisher that used to occupy it, the Lightner Building is considered a contributing structure to the architectural character of the Historic Michigan Boulevard District, according to city planning documents. The developers aren’t proposing any changes to the building’s exterior, according to the zoning application.” (Herzog, Crain’s Chicago Business, 1/15/25)
Read the full story at Chicago YIMBY and Crain’s Chicago Business
- Chicago Plan Commission Approves Residential Conversion Of 1006 South Michigan Avenue, Daniel Schell, Chicago YIMBY, 3/22/25
- Developers eyeing residential conversion for South Loop office building, Rachel Herzog, Crain’s Chicago Business, 1/15/25
- Residential conversion planned at 1006 S. Michigan; The office building would become 49 apartments, Lukas Kugler, Urbanize Chicago, 1/20/25
- Details Revealed For Residential Conversion of Lofts Under 1000M In The South Loop, Ian Achong, Chicago YIMBY, 1/21/25
- Developers of major Chicago apartment tower eye residential conversion of offices underneath, Vintage Michigan Avenue building sits next to, and partially under, Helmut Jahn-designed 1000M, Ryan Ori, CoStar News, 1/15/25
- Could apartments be coming to this vintage office building? Alby Gallun, Crain’s Chicago Business, 6/3/15
- Historic Michigan Boulevard District Design Guidelines 2/4/16
- Lightner Building, 1006 S. Michigan Ave Listing, Loopnet