That year the house was sold to Hawley L. Smith, Jr., with the understanding that the Smiths would occupy the Charnley House. Instead, the house was rented. In the late 1970s, the house was sold to Lowell Wohfeil, a well-known North Side real estate developer. During this time, architect John Vinci with assistance from Timothy Samuelson undertook selected restoration projects. In the mid 1980s, Wohfeil decided to sell the house, but he would only sell it to someone who would commit to preserve it. The house was for sale for almost two years before Wohfeil accepted the bid put forward in 1986 by the SOM Foundation that would preserve the house and turn it into their headquarters. That year was important for two reasons: it marked the fiftieth anniversary of the architecture office Skidmore, Owings & Merrill (SOM) and the SOM Foundation announced its intention to create an institute devoted to research. The goals of the SOM Institute (later renamed the Chicago Institute for Architecture and Urbanism) were the study of architecture, urbanism, engineering, and planning, and the advancement of the arts through educational endowments, support of museums and public organizations, preservation of archives, exhibitions, publication of special books on art and architecture, and other similar endeavors.
Between July and October 1986, several meetings took place at the Charnley House between board members of the SOM Foundation and SOM architects in charge of the restoration to review the proposed allocation of the SOM Foundation activities and the preliminary proposal for restoration. The restoration itself took place between May 1987 and May 1988.