28-Story High-Rise Project to Face Community Review
The proposed development will alter traffic and local retail competition for businesses near Diversey and Sheridan.
Updated on Oct. 28, 2026 in Openings & Closings
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Alderman Bennett Lawson is hosting a community meeting on November 4, 2026, to discuss a proposed 28-story residential high-rise in Chicago. The development, slated for the former Stone Medical Center site, features 345 residential units and 10,000 square feet of retail space.
Why it matters
The project signals significant densification at the Diversey Parkway and Sheridan Road intersection, impacting local traffic patterns and retail availability. Developers acquired the property for $17.25 million, with proceeds earmarked for the maintenance of the Elks National Veterans Memorial.
The 28-story tower includes 345 residential units and 10,000 square feet of retail space, following a $17.25 million property acquisition. The development plan provides 275 vehicle parking spaces and 345 bicycle spots for residents and visitors.
The players
Bennett Lawson
A Chicago alderman responsible for representing local constituents and overseeing neighborhood zoning and development matters.
The details
The design utilizes a three-tier sculpted tower composed of three staggered volumes atop a retail podium. Operators should note the site plan mandates the widening of an existing alley to facilitate two-way traffic flow. The current 12-week demolition phase follows the departure of the final medical center tenants in April 2026.
Timeline
1951: Building opened as union headquarters.
1979: Union headquarters moved and site sold for hospital use.
Late 2025: Developers purchased the medical center property.
April 2026: Final medical center tenants vacated the premises.
November 4, 2026: Virtual community meeting scheduled for development project.
Market Landscape
This development aligns with broader trends in Chicago to replace obsolete medical and office footprints with high-density residential towers. It reflects the city's ongoing efforts to integrate income-restricted housing into new luxury-scale projects via municipal density requirements.
Business operators in East Lakeview should anticipate increased construction-related traffic and altered alley access at Diversey Parkway and Sheridan Road. Retail owners should monitor the introduction of 10,000 square feet of new commercial space as a potential new competitive baseline for the corridor.
The takeaway
Large-scale residential projects continue to replace aging commercial infrastructure, creating new density demands at major intersections. Owners should track city council zoning agendas and community meeting minutes to identify specific infrastructure improvements or traffic flow changes that may affect delivery and logistics operations.
What happens next
The 12-week demolition process of the existing Stone Medical Center structure is currently underway.
Further reading
For more information on current commercial and residential site shifts in the area, visit Chicago Openings & Closings.
Source note: This article includes information reported by CBS News.
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