Chicago-based McHugh Construction has announced the start of construction on the office-to-residential conversion of Wacker Place, a 25-story, 248,000-square-foot art deco tower at 65 E. Wacker Place in downtown Chicago. McHugh is serving as general contractor for developer Mavrek Development, in partnership with ACRES Capital, LLC, which together recently closed more than $90 million in financing to launch the project. Pappageorge Haymes Partners is serving as project architect, and Cross Street will oversee residential leasing.
Originally built in 1928 as the Millinery Mart Building, the property will be transformed into 252 apartments across floors 4-24. McHugh is currently overseeing demolition and selective structural work to prepare for new residential layouts, building systems and amenity spaces. Floors 1-3 will house a reimagined lobby and building services area while maintaining retail tenant Morton’s The Steakhouse, which occupies space at street level and part of the second floor.
Upon completion, Wacker Place will offer a mix of 105 studios, 105 one-bedroom and 42 two-bedroom apartments, designed with an emphasis on in-unit workspaces to accommodate hybrid living and remote work trends. In compliance with Chicago’s Affordable Requirements Ordinance, the project will include 51 affordable units on site, offered at a weighted average of 60% of area median income (AMI). No parking is planned for the building, which has a Walk Score of 100 and is located just steps from multiple transit lines.
Plans call for a variety of building amenities, including a third-floor coworking and fireside lounge, fitness center, and an indoor-outdoor rooftop deck on the 25th floor offering sweeping skyline and river views. Each residential floor will feature approximately 12 apartments with units ranging from around 450 to 900 square feet.
“The building’s 1920s framing and pan joist slabs present unique challenges, but our team excels at working within historic structures,” said Kate Ivanova, executive vice president of McHugh Construction. “From threading new risers through existing slab and HVAC systems through a tight vertical core to protecting the building’s historic details, we’re bringing this landmark back to life while meeting modern residential standards.”
McHugh is coordinating extensive MEP design-build work to install all new plumbing, electrical, HVAC and fire protection systems. The project team is also restoring the building’s historic façade, including removal, replication and reinstallation of terra cotta ornamentation in compliance with National Park Service preservation guidelines, along with tuckpointing and exterior repairs. “Projects like Wacker Place demonstrate the potential of adaptive reuse to reenergize Chicago’s historic core,” said Adam Friedberg, CEO of Mavrek Development. “We’re proud to partner with McHugh and ACRES to protect one of the Loop’s architectural treasures while reimaging its interior to create modern homes that honor the city’s legacy of great design.”
Images Courtesy of: McHugh Construction
The development team secured project financing through a $62.4 million senior loan from Derby Lane Partners, an $11 million loan from Hoyne Savings Bank and $17 million in federal and Illinois historic tax credits monetized by PNC Bank. The project is targeting certification under the National Green Building Standard (NGBS). The first residences, on floors 4-12, are expected to deliver in summer 2026, with phased occupancy continuing through year-end.
McHugh is well-versed in adaptive reuse and landmark construction projects. Last year, the general contractor completed the multimillion-dollar renovation of a 112-year-old building at Wacker and Wabash avenues – just down the street from Wacker Place – into L7 Chicago, the city’s first hotel dedicated to Korean culture and hospitality. And just months before delivering L7, McHugh finished the $30 million transformation of Chicago’s historic Ramova Theatre from a long-shuttered single-screen cinema dating back to 1929, into an 1,800-person concert hall with a brewery, taproom and restaurant.
About McHugh Construction:
Specializing in multifamily residential, hospitality, and recreational facilities, McHugh Construction is a fourth-generation, privately owned company and one of the largest full-service construction firms in the United States. McHugh is known for its collaborative, transparent, and efficient approach to project delivery. The firm offers a comprehensive suite of services, including general contracting, construction management, design-build, preconstruction, program management, structural engineering and optional concrete construction through McHugh Concrete. With an 80% repeat client rate, McHugh has earned a reputation for delivering complex projects on time and within budget while fostering strong partnerships with subcontractors. Signature projects include five-star hotels such as The Peninsula, Ritz-Carlton Chicago, and Four Seasons; record-setting high-rises like 1000M, St. Regis Chicago, NEMA Chicago and Aqua Tower; and major recreational venues including the United Center and the Indoor Track & Field Facility at Gately Park. McHugh also led the award-winning transformation of Navy Pier through its Centennial Vision renovation. McHugh has completed projects in Nashville, St. Louis, Minneapolis, South Florida, and other key markets. For more information, visit www.mchughconstruction.com.
About Mavrek:
Mavrek, founded in 2010, has grown into one of Chicago’s most active developers. Originally focused on luxury single-family homes, the firm has expanded into high-quality urban infill multifamily and mixed-use projects. With a strong commitment to Chicago and a collaborative approach to executing complex developments, Mavrek represents the next generation of the city’s real estate leaders.
About ACRES Capital, LLC:
ACRES is a prominent nationwide direct lender and SEC-registered investment adviser, offering a comprehensive range of debt capital solutions including construction, bridge, and permanent financing for the commercial real estate sector. ACRES focuses on opportunities within the $15 million to $100 million range, encompassing multifamily, student housing, retail, office, hospitality and industrial properties. For more information, visit www.acrescap.com.
Feature Image Courtesy of: McHugh Construction
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