Envoi Partners to Acquire McCormick Building Office Space
The firm plans to convert the historic Chicago office space into apartments following a foreclosure lawsuit.
Updated on Oct. 29, 2026 in Commercial
Live Poll
Do you support converting vacant downtown office buildings into residential apartments in your area?
Envoi Partners has entered a contract to purchase the office portion of 332 South Michigan Avenue, known as the McCormick Building. This move effectively resolves a $29 million foreclosure lawsuit brought against the current owner, Aetna.
Why it matters
The acquisition marks another step in the developer's strategy of purchasing distressed downtown office buildings to convert them into residential apartments. This project aims to address the significant decline in the property's valuation since its peak.
The McCormick Building's office portion saw its appraisal drop from $56 million in 2016 to $13.4 million in January 2026. The site contains 78 separately owned residential condos that were delivered in 2000.
The players
Envoi Partners
A real estate development firm focused on converting distressed urban office assets into residential apartment units.
Aetna
A major American managed healthcare company that previously served as the owner of the McCormick Building office portion.
The details
Envoi Partners is targeting the 14-story office space for a residential conversion similar to their project at 19 South LaSalle Street, where 140,000 square feet of office space is becoming 175 apartment units. The property has faced financial distress, culminating in the $29 million foreclosure lawsuit that this purchase agreement seeks to resolve.
Timeline
1990s: The building was split into separate office and condo sections.
2000: Residential condos were delivered.
2004: Aetna purchased the property for $29 million.
2016: The property was 83 percent leased and appraised at $56 million.
January 2026: The property was appraised at $13.4 million.
Culture Shift
This project follows a pattern set by the 19 South LaSalle Street conversion project. It reflects a broader shift in downtown real estate as developers repurpose aging, underutilized office stock to meet urban residential demand.
Local residents and businesses may see the revitalization of a distressed building through its transition from vacant office space to new residential units. The change in use is likely to increase the density and foot traffic in the South Michigan Avenue corridor.
The takeaway
The McCormick Building conversion highlights how developers are navigating the post-2016 decline in office property values by pivoting toward residential use. Investors and residents should monitor these conversions as they reshape downtown residential availability.
Further reading
For more background on property market trends, visit the Chicago Commercial section.
Source note: This article includes information reported by The Real Deal New York.
Live Poll
Do you support converting vacant downtown office buildings into residential apartments in your area?
