Chinese buyer plans partial residential conversion at Wacker Drive office building

May 9, 2026 - 01:14

A Chinese investment group has moved to acquire a struggling office property on Chicago's Wacker Drive, with plans to convert part of the building into residential units. The deal highlights two converging trends reshaping the downtown real estate market: office towers selling for a fraction of their pre-pandemic valuations and the growing push to turn empty commercial space into housing.

The buyer, a firm linked to Chinese capital, is set to purchase the 36-story structure at a steep discount compared to its last sale price before the pandemic. Industry sources indicate the building has suffered from high vacancy rates as companies continue to shrink their office footprints or shift to hybrid work models. The new owners intend to keep some office floors but will convert upper levels into apartments, aiming to capture demand for downtown living.

This transaction is one of several recent examples where foreign investors see opportunity in distressed U.S. office assets. Local officials have encouraged such conversions as a way to revitalize the central business district, which has seen foot traffic drop and retail closures. However, challenges remain, including high construction costs and the complex engineering required to retrofit an office tower for residential use. The deal is expected to close later this year, pending regulatory approvals.