Interra Realty is pleased to present exclusively for sale 1006 S. Michigan Avenue, an adaptive-reuse office-to-residential conversion opportunity in Chicago's South Loop. The existing building comprises 88,468 gross square feet across eight floors plus a full basement and mechanical penthouse, and is planned for conversion to 49 residential units above 3,934 SF of ground-floor retail and 1,420 SF of amenity and co-working space.

The conversion program delivers seven identical residential floors (Levels 2-8) of seven units each - 21 one-bedroom and 28 two-bedroom units averaging 1,139 SF. That average unit size is well above prevailing new-construction product and is a direct function of the existing structural bay depth, differentiating the project from competing South Loop supply.

The project is underwritten as a certified historic rehabilitation supported by $3,089,712 of Historic Tax Credit equity, which is applied against development cost in the budget. Eight units (16.3% of the total) are restricted under the Chicago Affordable Requirements Ordinance at 40%-80% AMI and the remaining 41 units are market-rate, with a $465,704 fee-in-lieu carried in the budget to satisfy the balance of the ARO obligation.

This OM presents a single conversion scenario built on pro-forma market rents and assumes a five-year hold with a refinancing at the end of Year 2. Investors have the opportunity to acquire an entitled project that is ready for construction. The property faces Grant Park offering premium views to east facing units.