Milshire Hotel Redevelopment Plans in Logan Square

Details have been revealed for the redevelopment of the long-vacant Milshire Hotel at 2525 North Milwaukee Avenue in Chicago’s Logan Square neighborhood.

Located mid-block between North Sacramento Avenue and West Logan Boulevard, the four-story building has been vacant since the hotel closed in 2014. The property has changed ownership several times since then, but Milshire Hotel LLC is now moving forward with plans to rehabilitate the historic structure for residential and commercial use.

Designed by Kennedy Mann, the adaptive reuse project will preserve the existing building while creating 30 residential units and reopening the Milwaukee Avenue storefronts for two commercial tenants.

Chicago Yimby reports that the redevelopment will also restore the Milshire’s recognizable outdoor marquee sign, retaining one of the building’s most distinctive features.

Historic Milshire Hotel to Be Rehabilitated

Built in the 1920s, the Milshire originally operated as a hotel serving the surrounding entertainment district.

Over time, the property evolved into a Single Room Occupancy hotel that provided accommodations for migrant and short-term residents. The building eventually closed in 2014 due to health-related issues and has remained vacant for more than a decade.

Rather than demolishing the structure for a new development, the current plans call for rehabilitating and converting the existing four-story building.

For construction teams, this means the project will primarily involve adaptive reuse, restoration, building system upgrades and interior renovation rather than conventional ground-up construction.

30 Residential Units Planned

The rehabilitated building will contain 30 residential units spread across portions of the ground floor and the upper levels.

The proposed unit mix includes:

• 21 studio apartments
• 7 one-bedroom apartments
• 1 two-bedroom apartment
• 1 three-bedroom apartment

Twenty percent of the apartments will be designated as affordable units.

The large number of studios reflects the building’s historic configuration and former use as an SRO property, while the inclusion of one-, two- and three-bedroom layouts will provide a broader range of housing options within the rehabilitated structure.

Two Commercial Spaces Along Milwaukee Avenue

An important component of the redevelopment will be the reopening of the building’s ground-floor storefronts. Plans call for two separate commercial spaces facing Milwaukee Avenue, along with a small residential lobby.

Reactivating the storefronts will require rehabilitation of the existing commercial frontage and interior build-outs for future tenants. Specific commercial tenants have not been announced. The remainder of the ground floor will be used for residential space.

Light Wells Will Provide Private Patios

No shared outdoor amenity space is planned as part of the redevelopment. However, ground-floor residential units will have access to small private patios positioned within the building’s existing lateral light wells.

Working within the existing building configuration will be an important consideration during construction. The development team will need to adapt the older hotel structure for modern residential use while maintaining adequate light, ventilation and access throughout the building.

Historic Marquee Sign Will Be Restored

One of the more visible restoration elements will be the preservation of the Milshire Hotel’s outdoor marquee sign. The owners plan to retain and restore the recognizable sign as part of the building renovation.

Restoration work could involve specialty sign contractors, electrical work, metal restoration and refinishing, depending on the condition of the existing marquee.

Preserving the sign will allow the project to retain a recognizable piece of the property's history even as the former hotel is converted to a new use.

Construction Trades Involved

Because the Milshire project involves rehabilitation of an existing 1920s building rather than demolition and ground-up construction, the likely construction trades will be concentrated heavily on restoration, interior renovation and building system modernization.

Potential trades include:

• Selective demolition contractors
• Building restoration contractors
• Masonry repair and tuckpointing contractors
• Storefront and glazing contractors
• Historic window and exterior restoration specialists
• Marquee and specialty sign restoration contractors
• Electrical contractors
• Plumbing contractors
• HVAC contractors
• Fire protection and life-safety contractors
• Carpentry and framing contractors
• Drywall and insulation contractors
• Flooring contractors
• Painting and finishing contractors
• Cabinetry and millwork contractors
• Kitchen and bathroom fixture suppliers
• Appliance suppliers and installers
• Commercial interior build-out contractors
• Patio and light-well improvement contractors

The age of the building could also require additional repair and modernization work as construction progresses, particularly when crews begin opening walls and accessing existing mechanical, electrical and plumbing systems.

City Approvals Still Required

The redevelopment has not yet reached the construction stage.

Milshire Hotel LLC will need to secure full approval from the City of Chicago before rehabilitation work can move forward. No construction start or completion schedule has been announced.

Once approvals are secured, the project would bring a long-vacant Milwaukee Avenue property back into active use while preserving the existing four-story structure.

For contractors and suppliers, the redevelopment is particularly relevant as an adaptive reuse opportunity. Rather than building an entirely new structure, the construction program will focus on transforming a century-old former hotel into modern apartments and commercial space while restoring important exterior elements.

If approved, the project will deliver 30 residential units, including affordable housing, two commercial spaces and a restored Milshire marquee at 2525 North Milwaukee Avenue.