Chicago developer buys River North office building for conversion that would add two stories

July 21, 2026 - 04:53

A Chicago real estate firm has purchased a vintage office building in the River North neighborhood with plans to turn it into rental housing. Concord Capital paid $4.1 million for the property at 226 W. Ontario St., a structure that currently houses offices but will be converted into 70 apartments.

The developer intends to add two stories to the existing building as part of the conversion. The project reflects a broader trend in the city, where older office spaces are being repurposed into residential units to address housing demand and declining office occupancy. River North, known for its galleries, restaurants, and nightlife, has seen several similar conversions in recent years.

Concord Capital has not released a timeline for construction or a target date for leasing. The building's location near the Chicago River and major transit lines makes it attractive for renters seeking urban amenities. The purchase price of $4.1 million is relatively low for the area, likely reflecting the cost of the planned renovations and structural additions.

The move comes as downtown Chicago continues to grapple with high office vacancy rates, pushing property owners to consider alternative uses. Residential conversions can be complex, often requiring zoning changes and significant investment in mechanical systems, but they offer a way to breathe new life into aging commercial buildings.