Mo2 Properties has office-to-residential conversion in its sights with a $3 million acquisition in River North.
The local developer, led by principals and brothers Ken and Michael Motew, purchased the 48,000-square-foot, seven-story Boylston Building at 116-122 West Illinois Street for $62 per square foot, with plans to convert it into 36 apartments, CoStar reported. The sale represents the first ownership change in the building’s history.
It was constructed in 1913 by the Boylston Steam Specialty Company and has long been used for light manufacturing and distribution. More recently, though, it was leased as vintage office space.
The property had been under the ownership of the Boylston family since its construction, even after the steam-valve business was acquired by Minnesota-based Valve Check and ceased using the building.
Mo2 Properties is no stranger to revitalizing older buildings. The developer owns about 700 apartment units throughout Chicago, including a mix of ground-up developments and conversions.
Known for focusing on smaller properties, Mo2 has made a name for itself by preserving the architectural history of buildings while updating them for modern living. The developer’s Boylston Building project will offer one- and two-bedroom apartments, with the Arthur Murray Dance Studio on the ground floor remaining as the sole retail tenant.
“Our project is different than changing the space from traditional office space,” Ken Motew said. “This is a loft building, and we’ve done plenty of work in loft buildings.”
The Boylston Building conversion comes amid a broader trend in Chicago of turning underutilized office space into residences.
Demand for office space has dwindled in recent years, while the apartment market continues to grow. Directly across the street, Chicago Development Partners is planning a similar project at 111 West Illinois Street, where it will convert the office portion of a 10-story building into 145 apartments.This trend is further exemplified by Commonwealth Development Partners’ nearby project to transform most of a 24-story office building at 500 North Michigan Avenue into 320 residential units.
— Andrew Terrell
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