“A Chicago firm plans to switch uses for a River North building that it bought out of financial distress, adding to a wave of office-to-residential projects in the area just north of the Loop business district.
“Monroe Residential Partners said it will start converting the century-old building at 401 W. Ontario St. into 57 apartments in the fall after remaining office leases expire.
“The deal continues the trend of vintage, high-vacancy properties in the area selling to developers looking to convert them to apartments.
“That movement has come as office owners facing large vacancies and high property taxes have been unable to pay off loans and as developers have sought out properties to convert to apartments amid Chicago’s strong rent growth and an undersupply of new units in high-demand neighborhoods such as River North.
“That movement has come as office owners facing large vacancies and high property taxes have been unable to pay off loans and as developers have sought out properties to convert to apartments amid Chicago’s strong rent growth and an undersupply of new units in high-demand neighborhoods such as River North.
“‘Many of these buildings just no longer work as offices,’ Drew Friestedt, a principal at Monroe Residential Partners, told CoStar News. ‘The next logical use is residential.’
“Monroe and an affiliate general contractor, 3F Construction, have extensive experience with conversions in Chicago and other cities. The residential-focused firms are owned by Friestedt and Michael Obloy.” (Ori, CoStar News, 1/14/26)
The project’s estimated total development cost is $20 million, including the building’s purchase price. Monroe Residential Partners is in the market for construction financing, with plans to start work in October and complete the project a year later.
Monroe Residential Partners plans to develop a mix of one-bedroom units that will measure approximately 450 square feet with rents starting at $2,300 a month and two-bedroom, duplex-style units that will measure about 1,200 square feet and rent for up to around $3,800 a month.
The property’s current DX-7 zoning allows residential use above the ground floor. Since Monroe Residential Partners’ plans include ground-floor units, the firm will need approval from the Zoning Board of Appeals.
Monroe Residential Partners’ portfolio includes mixed-use and residential projects, including developments at 851 W. Grand Ave. and 1313 W. Randolph St. in Chicago, according to the firm’s website. (Herzog, Crain’s Chicago Business, 1/13/26)
Read the full story at CoStar News and Crain’s Chicago Business
- Loft offices in Chicago’s River North to be converted to apartments; Monroe Residential Partners buys building out of financial distress, Ryan Ori, CoStar News, 1/14/26
- River North office building teed up for residential conversion, Rachel Herzog, Crain’s Chicago Business, 1/13/26
- Monroe Residential scoops up distressed River North office building for resi conversion; Chicago-based firm bought the four-story loft for more than $5M, with plans to break ground in October, The Real Deal, 1/14/26
- Greenstone Partners Brokers River North Office-to-Multifamily Sale, Jasmine Kilman, Connect Industrial Midwest, 1/12/26