JW Marriott sues LaSalle Street Reimagined developer over office-to-residential conversion

JW Marriott is suing a Chicago developer working on the city's LaSalle Street Reimagined Initiative, alleging the project is illegally moving forward without the hotel's consent.

The initiative started when the COVID-19 pandemic hit the Loop hard. With office buildings emptying out, Mayor Brandon Johnson said he and his administration looked for ways to turn the neighborhood's "office monoculture" into more of a mixed neighborhood that can "live and breathe and work and socialize."

In early September, city leaders hosted a ribbon cutting for The Bellweather Residences, the first office-to-residential conversion completed as part of the project.

But now Crain's Chicago Business reports that the developer kicking off an office-to-apartment conversion of five floors at 208 S. LaSalle Street is facing a lawsuit from the owner of the JW Marriott Chicago hotel beneath it.

According to the report, a venture of the property's owner began demolition work in late October to prepare to begin construction. But the lawsuit says the interior work violates a 2014 reciprocal easement agreement between the owner of the office floors and the hotel's owner, which requires one to sign off on any other work the other is doing that could materially impact the other party, Crain's reports.

Crain's reports the complaint was filed by the lender that foreclosed on the JW Marriott Chicago in 2022. The hotel occupies the 12 floors in the landmark building below the office block that is being converted into apartments.

A hearing in the case is scheduled for Jan. 4, 2027.