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K Equities and Time Equities, along with local firm Oak Capital, are planning to convert the eight-story Lightner Building in Chicago's South Loop into 49 residential units. The building, located at 1006 South Michigan Avenue, is adjacent to the recently completed 1000M apartment tower. The developers purchased the property for $10.5 million in 2015 and are seeking zoning changes to accommodate their plans.

    This move follows a broader trend of office-to-residential conversions in downtown Chicago, where landlords are struggling to fill vacant space due to low demand driven by the pandemic and shift to remote work. The city has made $151 million in tax increment financing funds available for such conversions. Similar projects include the conversion of office buildings at 135 South LaSalle Street and 65 East Wacker Place into apartments.

    The Lightner Building, a 117-year-old structure, will feature ground-floor retail space along with residential units. The developers' plans are unclear on whether the units will be rentals or for-sale properties. This project is part of a larger effort to revitalize Chicago's office market, which has seen a record-high vacancy rate of 26.3 percent in the fourth quarter.