Campari, R2 Seek $28M from Chicago for Office-to-Resi Project

Campari Group and R2 have secured a key vote for taxpayer funding in their bid to convert a historic Loop office building into apartments.

Chicago’s Finance Committee recently approved $28 million in public funding for the developers to partially convert the 14-story building at 79 West Monroe Street into 117 apartments, Crain’s reported. The committee’s unanimous approval sets the stage for a final City Council vote, which is expected as soon as next week.

The $64 million project is part of a larger city initiative aimed at revitalizing the Loop. Introduced by former Mayor Lori Lightfoot and supported by Mayor Brandon Johnson, it aims to repurpose underutilized office spaces in the Loop by converting them into residential buildings.

The building is expected to be the first of at least four developments to benefit from the city’s commitment of $163 million in tax-increment financing funds.

Campari Group is contributing $28.3 million in equity to the project, while also benefiting from $7.8 million in historic tax credit financing. If approved by City Council, the $28 million would be dispersed in three stages. Half would be released when the project reaches 50 percent completion, with further disbursements at the 75 percent mark and upon project completion.

The renovation would deliver 117 apartments, with 41 designated as affordable for those earning an average of 60 percent of the area’s median income. The developers are required to maintain the affordability for 30 years, a key element of TIF-funded support.

Alderman Bill Conway praised the project for its ability to transform downtown Chicago, but Alderman Daniel La Spata raised concerns about the project’s unit mix, which includes 56 studios, 54 one-bedroom apartments, and only seven two-bedroom units. La Spata urged developers to consider adding more family-friendly units.

Construction on the 79 West Monroe project is expected to begin early next year, with completion targeted for the first quarter of 2026.

— Andrew Terrell