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IllinoisMultifamily

McHugh Construction celebrates groundbreaking of 80-unit multifamily project in Chicago’s South Loop

April 30, 2026
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Photo courtesy of McHugh Construction.

McHugh Construction and joint venture partner Powers & Sons Construction, together with The Community Builders (TCB), Mayor Brandon Johnson, Third Ward Ald. Pat Dowell and other public officials, held a ceremonial groundbreaking April 27 for Southbridge 1C, the latest phase in the redevelopment of the former Harold Ickes Homes at 2305 S. State St. in Chicago’s South Loop.

The 12-story building will deliver 80 market-rate and affordable rental units in a mix of studio, one-bedroom and two-bedroom apartments with in-unit laundry, quartz countertops and plank flooring. Residents will enjoy easy access to downtown Chicago as the site is adjacent to the Cermak-McCormick Place CTA Green Line station and near multiple bus routes

The building will feature a 1,500-square-foot retail space at street level alongside a resident lobby. The first floor will also include a bike room with 80 spaces, a dog wash station, package room, leasing office and back-of-house areas. Amenity spaces on the 12th floor will include a fitness area, outdoor terrace with grills and seating, and resident storage.

Developed by TCB and supported by the Chicago Department of Housing (DOH), Chicago Housing Authority (CHA), Illinois Housing Development Authority (IHDA) and the U.S. Department of Housing and Urban Development (HUD), the 76,000-square-foot building will receive $11.9 million in Tax Increment Financing (TIF) assistance.

“Southbridge is an exciting addition to a growing part of the city, with strong access to transit and downtown,” said Ray Cisco, chief operating officer at McHugh. “We’re proud to partner with Powers & Sons and The Community Builders to help deliver high-quality housing that meets the needs of Chicago residents today and supports long-term neighborhood investment.”

Designed by Gensler, the building’s exterior will include window wall and metal panel systems, with face brick at the ground level, creating a sleek, modern design that complements the surrounding neighborhood.

McHugh Construction and Powers & Sons Construction will leverage their multifamily experience to deliver the approximately $36.5 million construction project on a tight urban site while coordinating with stakeholders and agencies. Construction is expected to be completed in June 2027.

“This is the type of work we do best — collaborating with multiple partners to deliver high-quality multifamily housing efficiently on complex, urban sites,” Cisco said.

Southbridge 1C will include 44 affordable apartments, representing 55% of the total unit count, including 15 residences for families earning between 30% and 80% of the area median income (AMI), and 29 units set aside for CHA households. The remaining 36 apartments will be leased at market rate.

The development cost of Southbridge 1C is estimated to be $48.9 million. The project will create 90 construction jobs and seven permanent jobs. The project will exceed participation goals, including 26% MBE and 6% WBE involvement, with more than 50% of work performed by Chicago residents.

McHugh Concrete will perform concrete work on the project; CE Anderson & Associates will serve as the structural engineer; Spaceco as the civil engineer; dbHMS as the mechanical, electrical and plumbing engineer; and McKay Landscape Architects as the landscape architect.

The 80-unit Phase 1C is part of a larger mixed-income, mixed-use Southbridge Redevelopment Plan, which calls for a total of 877 new residential units and 65,000 square feet of commercial and community-serving spaces. Phases 1A and 1B, two six-story buildings, were completed in 2021, adding 206 mixed-income apartments to the community.

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