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n the Chicago suburb of Deerfield, a unique office-to-residential project is taking shape. Celadon Partners, a firm led by Scott Henry and Aron Weisner, has acquired an office complex at 1101 Lake Cook Road and plans to break ground on an affordable senior living facility in its place. This move comes as cities struggle with stagnant vacancy rates and the pandemic's impact on office demand.

    Office-to-residential conversions have been touted as a solution to affordable housing needs, but they often face challenges due to incompatible floorplans and high retrofitting costs. To overcome these hurdles, some cities offer subsidies to developers. Celadon has previously attempted an office conversion in Chicago's Loop, but the project stalled due to financing issues.

    The Deerfield property was initially set for redevelopment as a senior living facility before Celadon took over. The firm bought a majority stake in the property last year and will lead the $70 million redevelopment effort, which includes affordable housing tax credits. The 4-story, 147-unit development is expected to be completed by mid-2026.

    Celadon has also won a bid to redevelop the historic Harley Clarke mansion in Evanston into a hotel, restaurant, and other amenities for $29 million. This project demonstrates the firm's ability to navigate complex redevelopment opportunities and bring new life to underutilized properties.