DOWNTOWN — At least four Downtown buildings on LaSalle Street are a step closer to being transformed into apartments — many of them affordable — after getting the mayor’s green light.
Mayor Brandon Johnson announced Wednesday morning that four potential developments have been picked as part of the LaSalle Street Reimagined initiative, a plan that aims to help the corridor bounce back from pandemic vacancies. The projects would collectively use $151.2 million in tax-increment financing (TIF) funds to repurpose underused office buildings along LaSalle Street, adding more than 1,000 new apartments, with at least 319 of them affordable.
“I’ll tell you this, these four projects demonstrate our shared commitment to revitalizing downtown and creating affordable housing in every single neighborhood,” Johnson said at a press conference Wednesday. “Chicago truly is the greatest city in the world. I say it because it’s true. … What other cities do you hear the words ‘downtown’ and ‘affordability’?”
The projects moving forward include conversions of properties at 111 W. Monroe St., 208 S. LaSalle St., 30 N. LaSalle St. and 79 W. Monroe St.
The proposals will go to the city’s Community Development Commission, Landmarks Commission and then the City Council. If approved, construction would be slated to completed between the end of 2026 and the beginning of 2027, officials said.
The developments aim to transform LaSalle Street, long an affluent business and financial hub in Chicago. It has struggled with office vacancies in recent years since the pandemic.
“We’re talking about bringing housing to LaSalle Street, and we’re talking about really maximizing affordable housing in a space that we have not had it and it’s desperately needed,” said Ciere Boatright, commissioner of the Department of Planning and Development.
Residents earning an average of 60 percent of the area median income, or about $53,000 for a two-person household, will be eligible for the affordable units.
Kenya Merritt, deputy mayor for business and neighborhood development, said the city would also create and share a report later this week on how the administration would streamline development approval citywide for housing and commercial projects.
LaSalle Street Reimagined was announced during former Mayor Lori Lightfoot’s tenure in 2022. She picked five finalists before leaving office in May. Combined, Lightfoot’s shortlist requested more than $260 million in TIF funding to create more than 1,600 housing units, with more than 600 of them affordable.
Boatright said several factors were considered in determining which projects would get Johnson’s backing, such as which developers were bringing private capital and equity and had site control.
Three of the four proposals were from Lightfoot’s previous shortlist, while the proposal for the building at 79 W. Monroe St. was submitted during Johnson’s tenure. It was shortlisted because the developer has sufficient funding for the project, Boatright said.
Ald. Bill Conway (34th), whose ward includes the proposed project sites, said he’s happy Johnson has decided to move forward with the initiative.
“The pandemic had a huge impact on our central business district, as it has every central business district in the world. I am thrilled and grateful that these projects are moving forward and grateful to Mayor Johnson as well as to the Department of Planning and Development,” Conway said.
Conway has been a vocal advocate of the initiative since taking office. He consistently sought reassurance from the administration that the plan would move forward as developers continued to incur “soft costs” to keep their proposals alive.
Two finalists were not included in Wednesday’s announcement, but Boatright said the city is still engaging those developers and hopes to bring the projects to the finish line.
“I think it’s important to say that these are the first four that we’re announcing, and the exciting piece is that we’ve got additional proposals that we’re continuing to underwrite,” Boatright said.
One of the proposals left out of this round includes a 247-unit plan for 105 W. Adams St. by development team Blackwood Group and Celadon Partners, the only affordable housing developer in the initiative. This proposal had the highest percentage of total affordable units at 75 percent.
The other proposal is a mega 430-unit proposal at 135 S. LaSalle St., Bank of America’s former Chicago home.
The four approved proposals:
30 N. LaSalle St.
Cost: $130.2 million. TIF request: $57 million.
The proposal that would create the most residential units is being pitched for 30 N. LaSalle St. If funded, the project would create 349 units, 105 of them affordable. It also calls for ground-floor retail and added green space along Washington and LaSalle streets.
Previous renderings included a terrace on the 11th floor and several floors of office space.
208 S. LaSalle St.
Cost: $122.7 million. TIF request: $26.2 million.
Prime/Capri Interests, LLC — which is renovating the Thompson Center as part of state’s separate Google deal — would build 226 “upscale” apartments, 68 of them affordable. The apartments would be in between the JW Marriott Hotel on the lower levels and the LaSalle Hotel on the upper levels.
Previous renderings included onsite amenities like a state-of-the-art fitness center and a tenant lounge.
111 W. Monroe St.
Cost: $202.8 million. TIF request: $40 million.
Another proposal by Prime/Capri Interests, LLC would create 345 apartments, 105 of them affordable. Previous renderings show a hotel on the lower floors and 130 spots of underground parking. The hotel development would be done without city funding, developers previously said.
Developers plan to revive the former Monroe Club on the rooftop with shared amenities for hotel guests and residents, including a restaurant and a swimming pool.
79 W. Monroe St.
Cost: $64.2 million. TIF request: $28 million.
The Campari Group’s plan for the 1913 Bell Federal Building would create 117 apartments across eight floors, with 41 of them affordable, according to a press release.
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