Mid-rise 80-unit building will deliver market-rate and affordable housing steps from the CTA Green Line

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.

McHugh Construction continues to build on its track record of delivering affordable housing across Chicago. TCB is a repeat client, with McHugh and Brown & Momen having completed the developer’s 508 Pershing at Oakwood Shores in 2023, a 53-unit affordable apartment development in Chicago’s Bronzeville neighborhood. McHugh is also the general contractor for Habitat’s OC Living residential community, which currently includes a completed 92-unit mixed-income building and a neighboring 72-unit mixed-income building in Chicago’s North Lawndale neighborhood. McHugh and Bowa Construction also built both phases of 43 Green, a mixed-income TOD (transit-oriented development) in the heart of Chicago’s Bronzeville neighborhood on the city’s Near South Side, also developed by Habitat.

About McHugh Construction:

Specializing in multifamily residential, hospitality, and recreational facilities, McHugh Construction is a fourth generation, privately owned company and one of the largest full-service construction firms in the United States. McHugh is known for its collaborative, transparent, and efficient approach to project delivery. The firm offers a comprehensive suite of services, including general contracting, construction management, design-build, preconstruction, program management, concrete construction, and structural engineering. With an 80% repeat client rate, McHugh has earned a reputation for delivering complex projects on time and within budget while fostering strong partnerships with subcontractors. Signature projects include five-star hotels such as The Peninsula, Ritz-Carlton Chicago, and Four Seasons; record-setting high-rises like 1000M, St. Regis Chicago, NEMA Chicago and Aqua Tower; and major recreational venues including the United Center and the Dr. Conrad Worrill Track and Field Center at Gately Park. McHugh also led the award-winning transformation of Navy Pier through its Centennial Vision renovation. McHugh has completed projects in Nashville, St. Louis, Minneapolis, South Florida, and other key markets. For more information, visit www.mchughconstruction.com.

About Powers & Sons Construction:

Powers & Sons Construction is a Chicago-based contractor with deep experience delivering high-quality projects across the region. The firm is widely recognized for its leadership in community-focused construction and its commitment to workforce development and inclusion.

About The Community Builders:

The Community Builders is a leading nonprofit real estate developer dedicated to building and sustaining strong communities where people of all incomes can thrive. The organization develops and operates affordable housing and community-centered projects nationwide.