Skender Begins Conversion of Chicago Office Tower into 320 Apartment Units

Why this matters

The conversion of a prominent Chicago office tower into residential units underscores a persistent recalibration in institutional capital allocation within US commercial real estate. This adaptive reuse signals continued investor and developer caution toward traditional office assets amid uncertain demand recovery and evolving workplace dynamics. The pivot to multifamily reflects broader sector fundamentals: office leasing remains challenged by hybrid work trends, while residential housing—particularly in urban cores—continues to attract stable, long-term institutional capital due to demographic tailwinds and housing shortages. From a capital-markets perspective, such conversions illustrate how lenders and equity providers are increasingly willing to support repositioning strategies that mitigate office obsolescence risk. The scale of the project suggests confidence in multifamily’s resilience and liquidity relative to office, even in prime downtown locations. For allocators, this development highlights the growing importance of flexibility in portfolio positioning and the need to monitor how capital flows are shifting from underperforming office stock toward adaptive reuse and residential alternatives. Ultimately, these conversions may become a bellwether for how institutional capital navigates structural shifts in urban real estate demand.

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On the RET wire

• The 95th Chicago story tracked on the wire in July 2026. All Chicago coverage →
• Disclosed office deal value tracked in July 2026: $22.3B across 73 reported transactions. All Office coverage →

Computed from Real Estate Trail’s own tracked coverage

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