A New York investment firm that scooped up the Sonesta Extended Stay Suites at 201 E. Walton Place last September now wants to swap out hotel guests for year-round renters. The owner is floating a plan to turn the 18-story, 221-room tower just off the Magnificent Mile into apartments, with the proposal set to be unveiled to neighbors and 2nd Ward Alderman Brian Hopkins at a virtual meeting on April 21.
Developer outlines conversion plan
Churchwick Partners, the building’s owner, is pitching a phased renovation that would convert the entire hotel into rental apartments while keeping the total unit count in roughly the same range as the existing rooms, according to CoStar News. The firm acquired the property last September and, based on Cook County property records reviewed by CoStar, financed the deal with a $68.2 million loan from Peachtree Group in October.
Sale and building details
Public records list the parcel as having sold in September 2025 for roughly $3 million, according to county sale data compiled by Compass. The operator describes the property as a 221-room extended-stay hotel at 201 E. Walton Place, per the chain’s website and hotel directories at Sonesta.
Why conversions are picking up in downtown Chicago
Across downtown Chicago, developers are increasingly trying to squeeze more value out of underused hotel and office buildings by turning them into housing. With a relatively thin pipeline of new apartments and construction costs still running high, conversions have become a popular workaround. Recent project filings and permit records show a steady stream of office-to-residential and hotel conversions, including a planned overhaul at 230 E. Ohio St., as part of a broader trend in central neighborhoods, according to Chicago Cityscape.
Next steps and community reaction
Churchwick is expected to walk through its design concepts and rough phasing at the April 21 virtual meeting, which is being co-hosted by Alderman Hopkins and the Streeterville Organization for Active Residents, according to CoStar News. In an email to CoStar, Churchwick partner Asaf Fligelman said that “Churchwick is excited to engage with the community on our proposal.” The firm has not yet disclosed cost estimates for the project or a construction timeline.
