Water Tower Place
Water Tower Place is a landmark mixed-use development on Chicago's Magnificent Mile, combining an urban shopping center with a hotel, condominiums, offices, and other commercial uses.
Last updated August 26, 2026
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Overview
Water Tower Place is a major mixed-use development on North Michigan Avenue in Chicago, Illinois, and one of the defining properties of the Magnificent Mile. Its name refers to the nearby Chicago Water Tower, one of the few prominent structures to survive the Great Chicago Fire of 1871. The development comprises a large, atrium-style retail podium and a tall tower containing hospitality, residential, office, and other commercial space. The project was conceived in the late 1960s by Mafco Company, the shopping-center development division formerly associated with Marshall Field & Co. It was ultimately developed by Urban Retail Properties under the leadership of Philip Morris Klutznick and his son Thomas J. Klutznick. Architect Edward D. Dart of Loebl Schlossman Bennett and Dart served as chief architect. Opened in 1975, the development introduced a large enclosed shopping center to North Michigan Avenue at a time when the corridor was more strongly associated with luxury stores, expensive hotels, and high-end residential buildings. Its arrival helped move Chicago's downtown retail emphasis northward from State Street toward Michigan Avenue and broadened the avenue's customer base by adding more accessible middle-market and specialty retail. The tower is a reinforced-concrete slab faced with gray marble. Reference descriptions vary in the stated floor count, identifying it as a structure of roughly 74 to 78 stories and approximately 859 feet tall. The retail base contains about 758,000 square feet of shopping space and fronts the Magnificent Mile. The wider complex has included the Ritz-Carlton Chicago hotel, luxury condominiums, offices, and related commercial facilities. The property received the Urban Land Institute's J.C. Nichols Prize in 1986. At opening, the principal department-store anchors were Marshall Field's and Lord & Taylor. Marshall Field's became Macy's in 2006, while Lord & Taylor closed in 2007 and was replaced by a three-story American Girl store in 2008. Macy's ultimately closed its Water Tower Place location in March 2021 after being included in a nationwide store-reduction program. The loss of the department-store anchors, retail vacancies, the effects of the COVID-19 pandemic, and reported concerns about increasing crime along the Magnificent Mile weakened the shopping center's position. The property changed hands or control during several restructuring periods. The Rouse Company acquired the center in 2002 as Urban Shopping Centers was broken up. In 2022, Brookfield Properties transferred the building to its lender, MetLife Investment Management, amid continuing retail pressures. In 2023, reports described a plan to sell or repurpose the top five retail floors for office use, leaving the principal shopping operation concentrated on the first three floors of the podium. Water Tower Place has also been associated with a prominent hotel operation. The 435-room Ritz-Carlton Chicago originally used the Ritz-Carlton name under an agreement made before the modern Ritz-Carlton hotel company was established in its current form. Four Seasons Hotels managed the property from 1977, although the hotel was not initially part of the modern global Ritz-Carlton network. On August 1, 2015, management changed to Sage Hospitality, and the hotel became a full member of The Ritz-Carlton Hotel Company system. The development has remained an important Chicago real-estate landmark despite the contraction of its traditional department-store model. Plans announced for 2026 describe a proposed $170 million redevelopment involving the Michigan Avenue facade, the ground-level retail environment, and the conversion or reconfiguration of upper areas for flexible commercial and medical uses. These plans point toward a more diversified mixed-use property rather than a conventional enclosed shopping mall centered on department stores.
History
Water Tower Place emerged from a late-1960s effort to create a major urban shopping and mixed-use development on North Michigan Avenue. Mafco Company, formerly the shopping-center development division of Marshall Field & Co., initially planned the project. Development was eventually carried out by Urban Retail Properties, led by Philip Morris Klutznick and Thomas J. Klutznick. Edward D. Dart of Loebl Schlossman Bennett and Dart was the principal architect. The completed complex opened in 1975. Its tall reinforced-concrete tower was faced with gray marble and rose above a block-long retail podium. The project was notable both for its scale and for its urban setting: rather than functioning as a suburban shopping mall, it placed a large enclosed retail center directly on the Magnificent Mile and integrated it with a hotel, condominiums, offices, and other commercial uses. At the time of construction, the tower was described as the world's tallest reinforced-concrete building. Sources differ on its precise floor count, variously describing the structure as approximately 74 or 78 stories, while its height is generally given as about 859 feet. The development changed the commercial character of North Michigan Avenue. Its stores extended the corridor beyond a concentration of luxury retailers and helped attract middle-class shoppers and specialty chains. This contributed to a northward shift in Chicago's downtown retail geography, reducing the relative dominance of State Street. Early condominium marketing also used full-scale model units in a nearby building to promote residences before Water Tower Place was ready for occupancy. That campaign reportedly generated more than 100 sales before completion, but no financial amount is specified in the available material. The original retail anchors were Marshall Field's and Lord & Taylor. Marshall Field's was converted to Macy's in 2006. Lord & Taylor closed in spring 2007, and a three-story American Girl store took its place in 2008. A major refurbishment program began in 2001. Work included enclosing the Michigan Avenue arcade, adding a mid-block loading dock, updating escalators and fountains, improving sidewalks and facades, and redesigning department-store entrances. Exterior glass walls, display areas, rounded corner bays, and illuminated fins were used to give the previously monolithic marble base greater visual depth. The interior fountain was also replaced or enhanced with a computer-controlled tiered pop-jet fountain and cascading water features. The Rouse Company acquired Water Tower Place in 2002 during the breakup of Dutch-owned Urban Shopping Centers. The property later became associated with Brookfield Properties. Oprah Winfrey owned four condominium units in the building; those units were sold in 2015 and 2016 for slightly more than their purchase cost, although the available reference does not provide transaction figures. The hotel component has a complicated branding history. The 435-room hotel opened using the Ritz-Carlton name and lion emblem under an agreement made before the modern Ritz-Carlton chain was formed in the mid-1980s. Four Seasons Hotels began managing the hotel in 1977, making it part of the Four Seasons system operationally even though it carried the Ritz-Carlton name. The number of rooms was reduced to 435 in 1985. On August 1, 2015, management moved from Four Seasons to Sage Hospitality, and the hotel joined The Ritz-Carlton Hotel Company network. The property was ranked sixth among Illinois hotels by U.S. News & World Report in 2018, while it did not appear among that publication's top 100 hotels nationally in 2024. Macy's announced its departure in 2020, temporarily reopened the store, and then closed it on March 21, 2021 as part of a broader corporate downsizing. Retail vacancies increased after the department-store exit. In 2022, Brookfield Properties transferred the building to lender MetLife Investment Management. In 2023, the top five floors of the retail structure were reported to be under consideration for office conversion, with the retail footprint expected to focus on the first three podium levels. The property's announced 2026 redevelopment represents a further shift from department-store-led retail toward a mixed-use model. The proposed $170 million program would renovate the Michigan Avenue facade and ground floor while adapting upper levels for flexible commercial and medical uses. Water Tower Place therefore remains active, but its role is evolving from a pioneering enclosed urban mall into a more diversified real-estate destination.
- 2026
A $170 million redevelopment was announced
[1]The announced project would update the exterior and ground floor and adapt upper levels for flexible commercial and medical real estate.
- 2023
Upper retail floors were targeted for repurposing
[1]Plans were reported to sell or convert the top five retail floors to office use and concentrate shopping on the first three floors.
- 2022
Brookfield transferred the property to its lender
[1]MetLife Investment Management took control after the property experienced significant vacancy and retail-market pressure.
- 2021
Macy's closed its Water Tower Place store
[1]The store closed on March 21 after being included in Macy's nationwide reduction plan.
- 2015
Hotel management changed to Sage Hospitality
[1]On August 1, management moved from Four Seasons to Sage Hospitality, and the hotel became part of The Ritz-Carlton Hotel Company network.
- 2008
American Girl opened a replacement store
[1]A three-story American Girl store replaced the former Lord & Taylor space.
- 2007
Lord & Taylor closed
[1]Lord & Taylor ended its operation at the property.
- 2006
Marshall Field's became Macy's
[1]The original Marshall Field's department-store anchor was converted to Macy's.
- 2002
The Rouse Company acquired the center
[1]Rouse acquired Water Tower Place during the breakup of Urban Shopping Centers.
- 2001
A major refurbishment program began
[1]Renovation work addressed the arcade, loading facilities, escalators, fountains, sidewalks, facades, and department-store entrances.
Products and positioning
A landmark, centrally located Chicago mixed-use destination positioned at the intersection of Magnificent Mile retail, hospitality, residential living, and commercial real estate. Historically it differentiated itself by bringing a broad enclosed shopping experience and middle-market specialty retail into a corridor previously dominated by luxury-oriented uses; its current repositioning emphasizes flexible, diversified occupancy.
Urban shopping center · 1975
Water Tower Place shopping center
The retail component is an approximately 758,000-square-foot enclosed, atrium-style shopping center at the base of the tower. It historically housed department stores and specialty retailers and currently includes fashion, accessories, beauty, children's merchandise, and other shopping categories. The retail footprint is being reconsidered as department-store space has disappeared and upper levels are evaluated for office or other commercial uses.
Hotel · 1975
The Ritz-Carlton Chicago
The hotel is a 435-room hospitality component within Water Tower Place. It originally operated under a Ritz-Carlton naming agreement and was managed by Four Seasons beginning in 1977. Since August 2015 it has been managed by Sage Hospitality and operates as a member of The Ritz-Carlton Hotel Company network.
Luxury residential · 1975
Water Tower Place condominiums
The tower includes luxury condominium residences integrated into the broader mixed-use development. Early marketing used full-scale model units in a nearby building to generate advance interest. The reference material also records Oprah Winfrey's ownership of four units, later sold in 2015 and 2016.
Office and commercial real estate · 1975
Commercial and medical real estate space
Office and other commercial uses have long formed part of the tower's mixed-use program. The redevelopment announced for 2026 proposes expanding this role by adapting upper retail levels for flexible commercial and medical real estate.
Marketing campaigns
- 1975Advance condominium model-unit marketing
Chicago
Richard A. Meyers Realty and Urban Investment and Development used full-scale condominium units in a nearby building to market Water Tower Place residences before the main project was ready for occupancy. The approach reportedly produced more than 100 sales before completion.
Outcome. Generated substantial advance interest and sales before occupancy; the available reference does not provide a monetary value.
Brand decisions
2026
Announced $170 million mixed-use redevelopmentStrategyBackground
The property faced retail vacancies and needed to adapt its large podium and upper levels to changing demand.
Action taken
The announced redevelopment would renovate the Michigan Avenue exterior, overhaul the ground-floor retail area, and reconfigure upper levels for flexible commercial and medical real estate.
Aftermath
If completed as announced, the project would further reposition Water Tower Place as a diversified mixed-use asset rather than a conventional department-store shopping mall.
Announced redevelopment investment. $170 million planned investment (Announced in April 2026)
2023
Retail-footprint reduction and office conversion planStrategyBackground
Significant vacancies followed the Macy's closure and broader disruption in Magnificent Mile retail.
Action taken
The top five floors of the shopping-center structure were reported to be available for sale or conversion to office space, with retail concentrated on the first three podium floors.
Aftermath
The plan marked a shift from a large department-store-oriented mall toward a smaller retail operation supported by commercial uses.
2021
Macy's store closureStrategyBackground
Macy's included the Water Tower Place location in a nationwide store-reduction program after years of changing department-store economics.
Action taken
The store closed permanently on March 21, 2021.
Aftermath
The property lost its remaining major department-store anchor, contributing to the need for a different retail and mixed-use strategy.
2015
Ritz-Carlton hotel management transitionStrategyBackground
The hotel had operated under Four Seasons management despite carrying the Ritz-Carlton name through an older naming agreement.
Action taken
On August 1, 2015, management and operations moved to Sage Hospitality, and the hotel became a full member of The Ritz-Carlton Hotel Company network.
Aftermath
The property was integrated into the modern Ritz-Carlton system and its associated marketing and loyalty infrastructure.
2008
American Girl replaced Lord & TaylorStrategyBackground
Lord & Taylor had closed its Water Tower Place store in 2007, leaving a substantial anchor space available.
Action taken
A three-story American Girl store was installed in the former department-store space.
Aftermath
The replacement preserved a large-format destination use while shifting the space from department-store retail to children's merchandise and experiential shopping.
2001
Refurbishment and facade modernizationOtherBackground
The original retail base required updates to improve access, visibility, loading, and the relationship between the shopping center and Michigan Avenue.
Action taken
The owners enclosed the exterior arcade, added loading capacity, updated escalators and fountains, improved sidewalks and facades, and installed new glass bays, display areas, and illuminated exterior fins.
Aftermath
The work modernized the mall's public areas and softened the box-like appearance of the original marble podium.
Sources1 sources
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