Financing and permit secured for development at 7 W. Elm

Chicago-based developer Convexity Properties has secured construction financing and a foundation permit for its mixed-use development at 7 W. Elm. Located at the southwest corner of W. Elm St and N. State St, the project site was previously home to a vacant building that formerly housed Barnes & Noble and a separate structure that is currently home to a Lou Malnati’s restaurant. The structures were recently demolished to make way for the new development. 

Originally planned by Newcastle Limited, the approved plan from 2021 was designed by SCB and was expected to stand 345 feet tall with 304 residential units, ground floor retail space, and a redeveloped Lou Malnati’s space. In September 2025, Chicago-based developer Convexity Properties acquired the site. 

Designed by Goettsch Partners, the revised scheme will be largely similar but will stand 28 stories tall, reaching 312 feet tall instead of 345 feet tall. The unit count has been kept the same at 304 units with about 24,000 square feet of retail space provided. The same 132 parking spaces will be provided, and 180 bike parking spaces will be included in the building. Eight affordable units will be provided on-site with a $4.5 million fee in-lieu paid for the remaining 23 units required. 

On the ground floor, the building’s residential lobby will front W. Elm St with the parking access next to it via a curb cut adjacent to the alley. The majority of the ground floor will be occupied by retail space fronting N. State St and wrapping around the corner onto W Elm St. Bike parking will be located at the back along the alley in addition to the building’s loading dock. A portion of the building’s retail space will be located at the south end of the second floor with access from a dedicated ground floor lobby. 

The design features an L-shaped floor plan for the residential tower where the two legs of the tower are parallel with Elm St and N. State St. In the revised design, the L-shape is adjusted where the leg along W. Elm St is angled away from the street and then the leg along N. State St is elongated to the south. As part of the plan, the building’s podium will occupy the entire site footprint, replacing both the Barnes & Noble building and the Lou Malnati’s building.

The building’s five-story podium has been designed to be contextual to the neighborhood and will be clad in champagne metal panels and brick with a highly transparent ground floor facade at the retail spaces. The second-floor retail will be articulated with a two-story section of glass on the facade that then sets back to create an outdoor terrace for that space that is targeted to become home to a food and beverage tenant. 

Reaching 312 feet tall, the residential tower has been designed as two interlocking L-shaped massings with a different material palette than the podium to distinguish it from the base. Residential balconies have been added to the tower to activate the building’s facades. An amenity space with outdoor space is located on the 18th floor where the volumes meet. The 28th floor will be the primary amenity floor with fitness center, spa, resident lounge, and exterior pool deck.

According to Cook County property records and first announced by Crain’s, the developer has received an approximately $162.8 million construction loan from JPMorgan Chase Bank to finance the project. The overall development cost of the project has not been announced, and it is unknown whether the funding stack includes other equity to support the project. 

With the site’s existing buildings demolished and financing secured, the issuance of the caissons and foundation permit will allow general contractor W.E. O’Neil to begin construction on the new development. An official groundbreaking date has not been announced, but work will assumingly begin imminently. Completion of the project is planned for Spring 2028.