Chicago-based McHugh Construction started construction on the office-to-residential conversion of Wacker Place, a 25-story, 248,000-square-foot art deco tower at 65 E. Wacker Place in downtown Chicago.
McHugh is serving as general contractor for developer Mavrek Development, in partnership with ACRES Capital, LLC, which together recently closed more than $90 million in financing to launch the project. Pappageorge Haymes Partners is serving as project architect, and Cross Street will oversee residential leasing.
Originally built in 1928 as the Millinery Mart Building, the property will be transformed into 252 apartments across floors 4-24. McHugh is currently overseeing demolition and selective structural work to prepare for new residential layouts, building systems and amenity spaces. Floors 1-3 will house a reimagined lobby and building services area while maintaining retail tenant Morton’s The Steakhouse, which occupies space at street level and part of the second floor.
Upon completion, Wacker Place will offer a mix of 105 studios, 105 one-bedroom and 42 two-bedroom apartments, designed with an emphasis on in-unit workspaces to accommodate hybrid living and remote work trends. In compliance with Chicago’s Affordable Requirements Ordinance, the project will include 51 affordable units on site, offered at a weighted average of 60% of area median income (AMI). No parking is planned for the building, which has a Walk Score of 100 and is located just steps from multiple transit lines.
Plans call for a variety of building amenities, including a third-floor coworking and fireside lounge, fitness center, and an indoor-outdoor rooftop deck on the 25th floor offering sweeping skyline and river views. Each residential floor will feature approximately 12 apartments with units ranging from around 450 to 900 square feet.
McHugh is coordinating extensive MEP design-build work to install all new plumbing, electrical, HVAC and fire protection systems. The project team is also restoring the building’s historic façade, including removal, replication and reinstallation of terra cotta ornamentation in compliance with National Park Service preservation guidelines, along with tuckpointing and exterior repairs.
The development team secured project financing through a $62.4 million senior loan from Derby Lane Partners, an $11 million loan from Hoyne Savings Bank and $17 million in federal and Illinois historic tax credits monetized by PNC Bank. The project is targeting certification under the National Green Building Standard (NGBS).
The first residences, on floors 4-12, are expected to deliver in summer 2026, with phased occupancy continuing through year-end.
