Imagine transforming a historic Art Deco skyscraper in the heart of Chicago's bustling Loop from a quiet office space into a vibrant hub of residential living and community activity—sounds like the stuff of urban dreams, right? But here's where it gets controversial: is repurposing aging office buildings the key to reviving downtown areas, or could it be displacing opportunities for new development? Dive in as Chicago YIMBY chats with Mike Potter and Stefani Kalter from Riverside Development, the folks spearheading the $241 million makeover of 135 South LaSalle Street, partnered with AmTrust RE and DL3 Realty. Construction kicks off in spring 2026, promising to breathe new life into a landmark that's stood the test of time.
First off, let's set the scene with some visuals. Pictured here are renderings from SCB of the Field Building's upcoming transformation, showcasing its potential rebirth.
Known as the Field Building, this architectural gem was erected in 1934 by the Marshall Field Estate during the Great Depression. Back then, it was cutting-edge, boasting museum-quality craftsmanship and a multi-level Grand Arcade that catered to every need of office workers—from mail services to dining. Standing 44 stories tall, it recently housed Bank of America's Midwest headquarters until they moved to a shiny new tower along Wacker Drive in 2022, leaving it eerily silent. But Riverside's team is determined to recapture its glory, adding 92,000 square feet of retail and 386 residential units in the initial phase.
Here's a peek at the existing Grand Arcade and lower arcade, captured by Ian Achong, to give you a sense of the building's timeless charm.
When asked about shaping the project's vision, the developers reflected on the building's rich past and today's market demands. Originally the city's tallest office tower, it pioneered features like abundant natural light and ventilation in every workspace. Now, they're crafting something truly distinctive: a blend of local retail spots to keep the neighborhood buzzing around the clock. Think an all-hours café, a spacious gym, a specialty grocery store, and collaborations with cultural institutions to bring art and events to the historic spaces. It's like turning the building into a living, breathing community center.
What was the biggest hurdle in crafting this plan? The building's status as a National Register of Historic Places site and a Chicago Landmark since 1994 meant navigating strict preservation rules. They had to protect original elements like internal corridors, the Grand Arcade, and even tiny details such as the radiators beneath windows. Plus, they're replacing the historic windows with sympathetic replicas that can actually open, while keeping the exterior façade intact. These requirements posed real challenges for the design team at SCB, as shown in these photos of the existing elevators and intricate building details by Ian Achong.
And this is the part most people miss: the base's upper two floors will morph into a 177-car parking garage, accessed via a new ramp from old service areas, with elevators connecting directly to retail and residential floors five through fourteen. The unique floor layouts make residential conversion a natural fit, ensuring plenty of windows and light for each unit.
Units will include 228 studios, 106 one-bedroom apartments, and 52 two-bedroom ones. About 30 percent will be affordable housing, mandated by the city for projects like this under LaSalle Reimagined that get Tax Increment Financing (TIF) help. TIF, for beginners, is a way cities fund improvements by diverting future tax gains from the project—it's like investing in growth that benefits everyone. This aligns closely with Chicago's overall rule of 20 percent affordability in developments over 10 units.
Here are SCB's renderings of the pool terrace and floor plans for studios, one-bedrooms, and two-bedrooms, illustrating the thoughtful design.
Securing funding for such an ambitious undertaking? It's no small feat. Of the $241 million total, $98 million comes from TIF funds, and another $40 million from historic tax credits—special incentives that help cover construction costs by rewarding preservation efforts. Add in Class L landmark benefits and tax abatements to stabilize cash flow and reduce long-term risks. Despite the hurdles, the team sees huge value: with Chicago's severe housing shortage, this conversion could bring units to market in roughly half the time of a new build from scratch. And get this—these will feel brand-new to renters, yet cost about 25 percent less than comparable upscale projects. As rental prices are expected to soar through 2028 due to limited supply, that's a game-changer. Some might argue this speeds up housing relief, but others wonder if it sidelines the need for fresh builds altogether—food for thought.
A slice of the budget also funds removing four non-historic additions on the 25th floor's setback to create outdoor terraces. These will surround a new indoor amenity level with perks like a pool, grilling areas, green spaces, and a big dog park—matching or even outshining what you'd find in modern constructions.
Once underway, they'll work around occupied office floors 15 to 42, where tenants keep using the Grand Arcade entrance and elevators. But these could be phased into residential later on.
SCB's renderings of the amenity terrace and pool terrace hint at the luxury awaiting.
What excites them most about the finish line? Hearing Chicagoans share fond memories of the building has been heartwarming, and the community's strong backing is encouraging. They started collaborating on LaSalle Street initiatives even before the LaSalle Reimagined plan, teaming with banks and locals amid early COVID challenges to envision a more dynamic downtown. Everyone—from businesses to residents—longs for a lively, 24/7 Loop. By combining iconic design, thoughtful development, and a influx of new dwellers, they're aiming to catalyze that shift.
Preliminary work is progressing, including a new residential lobby with a dedicated LaSalle entrance for residents, while keeping the arcade public. Phase one wraps up in about 18 months, welcoming occupants by summer 2027.
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But here's a provocative angle: repurposing historic offices into homes might preserve character and boost affordability, yet some critics say it prioritizes quick fixes over innovative new architecture. Could this approach stifle creativity in urban design, or is it a pragmatic way to meet housing demands? What do you think—does revitalizing old buildings trump building anew? Share your views in the comments below; we're curious to hear agreements, disagreements, and fresh perspectives!
