The former Salesforce office space located in River North is on the brink of transformation as it will soon be converted into luxury apartments, amid rising office vacancy rates in the area.
A joint venture between Chicago-based Path Construction and WindWave Real Estate has secured the upper floors of the office building situated at 111 W. Illinois St. for $17 million.
In addition to the upper floors, the firms have also acquired the ground floor retail space, which is home to existing tenants Roka Akor and Tarry Coffee.
The redevelopment plan will involve converting the upper levels of the 10-story structure into 153 upscale apartments outfitted with high-end amenities.
Jack Tse, Path’s director of development, expressed excitement about the project, stating, “The location speaks for itself. We want to make sure it’s a cozy, private, elevated place within a busy city.”
Construction is expected to kick off by the end of June, with plans to have the units ready for occupancy by spring 2026.
The building has long been considered a strong candidate for residential conversion due to its features. After Salesforce vacated the premises to move to its namesake tower at Wolf Point, much of the office space has remained unoccupied.
Despite being a relatively new structure, completed in 2008, the mid-rise building lacks modern amenities that are often attractive to potential tenants.
However, the building offers many characteristics that real estate developers seek in conversion projects. According to Tse, the floors are expansive and can be easily divided into apartment units.
Furthermore, the building’s design includes separate elevator access to the upper floors, ensuring that this area will remain private and will not interfere with the Erikson Institute, a graduate school that will continue to occupy floors two to four.
The upcoming conversion will feature a blend of studio and two-bedroom apartments, in addition to one-bedroom units with dens. The amenities planned for the residents will include an outdoor terrace, a fitness center, and a co-working lounge.
Due to the building’s generous floor layouts, Tse mentions that the apartment sizes will exceed the average sizes found in standard downtown studios. A quintessential studio unit may typically measure around 400 square feet, while the studios in this project are expected to be approximately 550 square feet.
This conversion project marks one of Path’s initial efforts in such transformations, with the company also acting as the general contractor for the endeavor.
On the other hand, WindWave has a track record of leading, advising, and investing in various developments across Chicago, including notable properties like the CNA Center and the “Big Red” building located at 333 S. Wabash Ave.
WindWave Managing Partner Jon Cordell highlighted the advantages of the property, stating, “Located in the 98% leased River North with no luxury deliveries expected, 111 has ideal residential floorplate depths, a continuous glass facade, existing outdoor terraces, and no office tenants in the way.”
He concluded, “Luxury apartments are the perfect use for this modern building.”
The total investment in the conversion project amounts to $63 million, and notably, it involves no public subsidies. Landrock LP, based in Chicago, is backing the project with an investment of preferred equity.
Tse underscored the extensive work that went into securing the right design and amenities tailored to the River North market, while also managing to acquire the building at a favorable basis.
While utilizing an existing building for such projects can often be as costly as constructing from the ground up, the investment here aims to be efficient and lucrative.
The property was last sold in 2015 for $75 million when it changed hands to GLL, which was subsequently acquired by the Australian financial services firm Macquarie in 2018.
As office vacancy rates in River North continue to rise— climbing to 25.6% in the first quarter of 2025, just above the market average—it becomes increasingly clear that the conversion of this office space to residential use is a proactive response to the changing landscape.
Tse concluded, “We feel like this building can be really executed in a timely fashion. Logistically, it works. Our goal is to deliver the best product and as quick to market as we can because an empty office building is really not serving the region or the city, from a vitality standpoint, any good.”
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