A long-vacant hotel building at 601 West Diversey Parkway in Lincoln Park is officially on track for a new chapter. With a renovation permit now issued, the adaptive reuse project will convert the former hotel into 40 residential apartments, bringing new housing supply to a transit-rich and walkable part of the city.
Located at the southwest corner of West Diversey Parkway and North Lehmann Court, the existing structure has sat dormant for several years. The redevelopment effort is being led by Validus Capital, which is repositioning the underutilized asset through a full interior buildout while retaining the existing building envelope.
Urbanize Chicago reports that the project reflects a broader trend across Chicago, where adaptive reuse is increasingly favored as a faster and more cost-effective way to deliver housing compared to ground-up construction.
Project Team and Design Approach
The conversion has been designed by SPACE Architects + Planners in collaboration with Lopergolo + Bartling Architects, a New York-based firm with experience in residential reuse projects. Together, the design team is working within the constraints of the existing structure to efficiently reconfigure interior layouts for long-term residential use.
Rather than expanding the building footprint, the project focuses on interior demolition, structural coordination, and new building systems to support apartment living. This approach reduces site disruption while maximizing the value of the existing structure.
Unit Mix and Interior Layout
The redevelopment will deliver a total of 40 apartments distributed throughout the building, offering a diverse mix of unit types intended to serve a range of household sizes.
The planned unit breakdown includes:
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7 studio units
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12 one-bedroom units
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19 two-bedroom units
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2 three-bedroom units
Six of the units will be located in the basement level, with seven units on the ground floor. The second and third floors will each contain nine units, while the fourth floor will also house nine units.
Notably, four of the larger units will be duplex configurations. Two two-bedroom units and two three-bedroom units will span the fourth floor and a partial fifth floor, requiring more complex interior framing, stair construction, and mechanical coordination.
Parking-Free Design and Zoning Approvals
In keeping with its urban context, the project will include no on-site vehicle parking. The adjacent parking lot is not part of the redevelopment, and residents will instead be supported by 40 dedicated bicycle parking spaces.
The zoning path for the project required several approvals from the Zoning Board of Appeals. These included:
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A reduction of required off-street parking from 40 spaces to zero
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A reduction of the required loading space from one to zero
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A special use approval to allow residential units below the second floor
These variances reflect a growing acceptance of parking-free residential development in well-served neighborhoods like Lincoln Park.
Construction Scope and Sequencing
With the interior demolition permit already issued, the newly approved renovation permit clears the way for construction to begin once demolition is complete. REBLD General Contracting & Consulting LLC is serving as the general contractor and will oversee the buildout of the new residential units.
The scope of work includes:
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Selective interior demolition
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Structural modifications to accommodate new unit layouts
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New mechanical, electrical, and plumbing systems
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Fire protection and life safety upgrades
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Interior finishes and common area improvements
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Buildout of a small ground-floor retail space
Because the project is fully contained within the existing structure, construction logistics will focus heavily on sequencing, material staging, and minimizing impacts to surrounding streets.
Workforce and Trade Involvement
Adaptive reuse projects like this rely on a wide range of skilled trades, often working in tighter conditions than new construction. Trades expected to be involved include:
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Selective demolition contractors
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Structural concrete and steel trades
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Framing and drywall installers
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Mechanical contractors
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Electrical contractors
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Plumbing contractors
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Fire protection installers
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Elevator technicians
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Flooring installers
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Finish carpenters
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Painters and decorators
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Low-voltage and data contractors
Coordinating these trades within an existing building envelope requires detailed scheduling and close collaboration between design and construction teams.
A Practical Path to New Housing
The conversion at 601 West Diversey illustrates how adaptive reuse can efficiently add housing without the time and cost associated with ground-up development. By reusing an existing structure, the project shortens delivery timelines, reduces material waste, and aligns with city goals for sustainable urban growth.
As Chicago continues to balance housing demand with limited land availability, projects like this demonstrate how thoughtful design and construction planning can bring underperforming buildings back into productive use.
Once complete, the former hotel will re-enter the neighborhood fabric as a residential building, providing new homes while preserving the scale and character of its Lincoln Park surroundings.
DataBid is currently reporting on this project - 601 W. Diversey Mixed Use Conversion Development - Chicago (0060040725)
