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Chicago’s apartment pipeline stays thin as office conversions grow
Just under 5,300 units were under construction downtown as of June 30, with adaptive reuse expected to make up about 44% of downtown deliveries in 2026.
Chicago’s apartment market remains supply-starved, a condition that is pushing developers toward larger acquisitions and more office-to-residential conversions, according to Bisnow. Panelists speaking at the Bisnow Multifamily Annual Conference Midwest said the dry downtown pipeline is helping underpin fundamentals and drive deal activity.
Cross Street data cited by Bisnow shows just under 5,300 units under construction as of June 30, with 843 units delivered in the first half of 2026 and another 861 units expected to come online through the end of the year. Executives said competition is relatively limited, with Mavrek Development CEO Adam Friedberg arguing Chicago offers developers “very little competition.”
Bisnow also highlighted the role of adaptive reuse in the downtown pipeline. The outlet said about 44% of all downtown units delivered in 2026 are expected to come from conversions, with 117 already delivered and 823 units under construction. Mavrek Development is converting 65 E. Wacker Place, a historic office building, into 252 luxury apartments, with residents expected to move in in a few weeks.
In deal talk, Bisnow noted LaTerra Cos. CEO Charles Tourtellotte’s firm bought a nearly 1,500-unit multifamily portfolio for $455M at the end of last year. Tourtellotte said the properties have occupancies in the low to mid-90% range, lease trade-ups of 5% to 7%, and that the portfolio included assumed 4% interest-only financing, which he described as supporting promising cash flow when paired with a “six cap” purchase approach.