M
ike Shenouda is accelerating his Chicago loft office revamp efforts, with a focus on converting properties to housing in Lincoln Park. His firm Honore Properties recently acquired two vacant North Side loft offices for nearly $7 million, at 811 West Evergreen Street and 1415 North Dayton Avenue. The purchases reflect the decline in demand for mid-market loft offices as commercial tenants consolidate into higher-end spaces with premium amenities.

    The transactions mark a correction in the office market, according to Mike Cordaro of Peerless Development, which partnered with Honore on the Dayton Street purchase. Honore plans to convert the Evergreen Street building into 47 apartments and is considering similar conversions for its other properties. The firm has already entered several office-to-residential projects, including a 72,000-square-foot building at 118 South Clinton Avenue.

    The purchases also highlight the shift in market values, with the Evergreen Street property selling for $3.2 million, or about $70 per square foot, after being valued at over $8 million just four years ago. The Dayton Avenue property was sold for approximately $3.5 million, significantly less than its previous eight-figure valuation. Honore and Peerless are considering a residential conversion for the Dayton property but have not solidified plans.