Chicago Completed First Loop Office Conversion Project
The Bellwether building now provides 117 residential units in Chicago as part of a citywide effort to reuse office space.
Updated on Oct. 1, 2026 in Commercial
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In September 2026, developers finalized the transformation of 11 floors in the 121-year-old Rector building into 117 residential units. This project represents the first completed office-to-housing conversion in Chicago’s Loop.
Why it matters
This initiative addresses the city's affordable housing shortage while repurposing vacant space in the Loop. It serves as a testing ground for city plans to mitigate record-high downtown office vacancies.
The project includes 41 units for households earning 60% of the area median income. It utilized $28 million in city tax increment financing and $7.8 million in federal tax credits.
The players
LaSalle Street Reimagined
A city initiative coordinating the conversion of vacant office buildings into mixed-income housing.
The details
Developers retrofitted 11 floors within the 14-story Rector building to accommodate residential living. The process leveraged federal historic landmark tax credits and city tax increment financing to offset the high costs of repurposing aging commercial infrastructure for long-term residency.
Timeline
September 2026: City leaders officially marked the completion of the Bellwether project.
The Home Front
This project follows a growing trend of major cities using tax incentives to convert aging commercial assets into residential stock. It marks a significant shift in how Chicago approaches downtown land use and housing affordability.
Chicago residents interested in new downtown housing should track upcoming announcements regarding the remaining five projects in the city initiative. Prospective renters should verify income requirements for designated affordable units through city housing portals.
The takeaway
The successful conversion of the Bellwether building signals a new chapter for urban residential density in the Loop. Homeowners and renters should watch for additional unit availability as the city progresses toward its target of 1,765 new homes.
Further reading
Learn more about the latest commercial property shifts in Chicago Commercial.
Live Poll
Do you support converting vacant downtown office buildings into residential housing in your area?
