Morningside bought Chicago's shuttered Stewart School for $5.1 million in 2016; after spending $11.6 million, it became a 64-unit apartment building

A former Chicago school that closed its doors in 2013 has found a new life as an apartment building, bringing its previous owner a substantial profit. Morningside USA bought the landmarked Stewart School for $5.1 million and invested another $11.6 million to turn the property into 64 residential units. The redevelopment faced criticism when it was first proposed, but the finished building was fully occupied when it was sold for $23 million in 2022. The inputs are taken from The Real Deal and Uptown Update.

Why did Stewart School close

Stewart School, located at 4525 North Kenmore Avenue in Chicago’s Uptown neighborhood, was among 49 school buildings closed by Chicago Public Schools in 2013 as part of a systemwide consolidation. Enrollment had fallen sharply by then. The school had only 17 eighth graders in its graduating class, while attendance had dropped to fewer than 20 students per grade.


The closure sparked concern in the neighborhood, and the property’s later redevelopment became part of wider discussions about gentrification and changes in the area.

Morningside USA purchased the landmarked building from Chicago Public Schools in 2015 or 2016, according to the reports. The purchase price was $5.1 million. The investment firm then began work on converting the former school into apartments.

How did Morningside turn the school into 64 apartments

The renovation required an additional $11.6 million, according to an analysis of Chicago building permits issued between 2016 and 2018. The completed Stewart School Lofts opened in 2018 with 64 apartments. The units offered a range of sizes and rents. A 565 square foot studio rented for $1,655 a month and a 1,745-square foot three bedroom apartment was listed at $3,955.

The conversion also retained several features from the building’s past. Some apartments have blackboards on their walls. Others still have numbered classroom doors. 4 units were created inside the former auditorium where arches and ornate ceiling details remain.

These details gave the apartments a visible connection to their history as classrooms and school spaces.

What made the $23 million sale significant

Morningside sold Stewart School Lofts for $23 million in 2022, earning a reported premium of $7 million after accounting for the purchase and rehabilitation costs. Uptown Update reported on May 3, 2022, that the property had been sold at approximately $363,000 per unit. At the time, that was the highest per-unit price reported for a multifamily property sale in Chicago that year, surpassing an earlier sale at Astoria Tower.

The building’s 100% occupancy rate also indicated strong demand for the apartments. Uptown Update noted that the result challenged criticism from people who had described the school conversion as a failed investment.

The identity of the buyer was not immediately clear. According to Uptown Update, the purchasing LLC had been formed in March 2022, but its ownership remained anonymous as more information about the transaction emerged.



The sale marked the end of Morningside’s redevelopment project, which had turned a closed public school into a fully occupied apartment property. What began as a controversial school closure ultimately became a residential conversion that sold for $23 million.