“Two vintage loft office buildings downtown have sold to a developer who plans to convert them to apartments, and another office building marketed as a residential conversion candidate is moving toward a sale.

“Chicago-based Concord Capital paid $8.5 million for two loft buildings at 445 W. Erie St. and 542 S. Dearborn St., Principal Drew Millard said. The firm plans to convert the two properties into 107 rental apartments in total.

“The sale and pending deal show continuing momentum for office-to-residential conversions as rents in downtown Chicago skyrocket amid weak demand for workspace. While the city is poised to dole out about $317 million in tax-increment financing to create more than 1,800 apartments in empty office buildings on and near LaSalle Street, several private developers are taking on projects without subsidies that will create hundreds more new units.

“We have historic low office prices. We’ve been getting them pretty much 20 to 40 cents on the dollar on average,’ Millard said. ‘Couple that with Chicago as the number one rent growth market in the country.’

“The developer plans to turn 542 S. Dearborn St. into 74 apartments and 445 W. Erie St. into 33 apartments, with construction targeted to start in the fall. The conversions don’t require a zoning change.

“The Dearborn Street high-rise, a 14-story building in Printer’s Row, is also known as the Pontiac Building. Built in 1891, it’s in the National Register of Historic Places and is the oldest surviving work downtown by the architecture firm Holabird & Roche.

“The property is just 25% occupied today, according to Concord. The developer estimates the Dearborn conversion project to cost about $10.9 million, with some lower-level commercial space remaining, including offices and retail tenant Potbelly.

“Concord has been busy with several other similarly sized office-to-apartment conversions downtown, including at 223 W. Erie St., 230 E. Ohio St. and 440 W. Ontario St. The firm is also working on plans for a mixed-use development at a landmarked site at 42-46 E. Superior St.” (Herzog, Crain’s Chicago Business, 4/13/26)

Read the full story at Crain’s Chicago Business

• Residential conversions gain steam with sale of two downtown office buildings — plus another deal in the works, Rachel Herzog, Crain’s Chicago Business, 4/13/26
• LOFTY AMBITIONS TRANSFORM OLD FACTORY INTO NEW OFFICE CENTER, Chicago Tribune, 3/17/1985