Chicago Office Building Slated for Residential Conversion
The 1165 North Clark Street office site will transform into an 80-unit apartment complex.
Updated on Sept. 30, 2026 in Commercial
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Newstreet acquired the office portion of the 1165 North Clark Street building for $6.8 million to begin a major residential conversion. The developer plans to turn the 74,500-square-foot space into 80 one- and two-bedroom apartment units.
Why it matters
This project seeks to repurpose underutilized office space in Chicago, addressing a need for residential inventory in the city. The building is currently 60 percent occupied, and management is providing early lease termination options to existing commercial tenants.
The acquisition of the 74,500-square-foot space was backed by a $5.5 million loan, with the developer contributing $1.3 million toward the purchase. This follows a broader Illinois trend of 157 new home construction permits issued per 100,000 residents between June 2025 and May 2026.
The players
Newstreet
A real estate development firm currently expanding its multifamily portfolio in Chicago.
Goldman Sachs
An investment banking firm that previously owned and managed the commercial asset.
The details
Newstreet plans to begin construction in June 2027, with an expected timeline of 12 to 13 months to complete the residential conversion. The firm is managing the transition for current occupants by offering early lease termination options before site work begins. The developer is also drawing on experience from their recent 48-unit residential project in Lincoln Park, which broke ground in March 2026.
Timeline
Goldman Sachs purchased the building in 2015.
Goldman Sachs sold the ground-floor retail space in 2022.
Newstreet acquired the office building in September 2026.
Construction on the project is scheduled to begin in June 2027.
The Home Front
This conversion project reflects the ongoing shift in Chicago from underutilized commercial office space to dense residential housing. It follows the pattern set by the Illinois rate of 157 new home construction permits per 100,000 residents recorded from mid-2025 through May 2026.
If you are a commercial tenant currently leasing space in the building, monitor your mail for official notices regarding your lease terms. Prospective renters should keep an eye on project timelines to track potential housing inventory additions in the Gold Coast neighborhood by mid-2028.
The takeaway
Large-scale office conversions are a growing trend in urban markets, helping to convert vacant commercial footprints into active housing. Residents should watch for construction start dates in 2027 for major neighborhood projects that may impact local traffic or parking near 1165 North Clark.
Further reading
For more on the changing landscape of local properties, read our Commercial archives.
Source note: This article includes information reported by The Real Deal New York.
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