The Community Builders Breaks Ground on Chicago Mixed-Income Redevelopment
The project is taking shape at the site of a former public housing community.
The Community Builders has broken ground on Southbridge 1C in Chicago, the latest phase in the redevelopment of a former public housing project in the city’s South Loop.
At the site, the developer is building a 12-story, 76,000-square-foot, 80-unit mixed-income property that will provide affordable and market rate housing. The $48.9 million project is slated for completion in June 2027.
McHugh Construction and joint venture partner Powers & Sons Construction are the general contractors for the development. Other project members include McHugh Concrete, structural engineers CE Anderson & Associates, civil engineering firm Spaceco, dbHMS, which is handling mechanical, electrical and plumbing and McKay Landscape Architects. Gensler is the project architect.
Southbridge 1C will have a mix of studio, one- and two-bedroom apartments, including 44 affordable units. Fifteen of the affordable apartments will be for families earning between 30 and 80 percent of the Area Median Income and 29 units will be set aside for Chicago Housing Authority-supported households. The remaining 36 apartments will be leased at market rate. The residences will feature in-unit laundry, quartz countertops and plank flooring.
READ ALSO: Affordable Housing’s New Playbook
In addition to the apartments, 1C will have 1,500 square feet of street-level retail space. The first floor will include a resident lobby, an 80-space bike room, a dog washing station, a package room and a leasing office. Amenities including a fitness area, resident storage and outdoor terrace with grills and seating will be located on the 12th floor.
The transit-oriented development is near multiple bus lines and the Cermak-McCormick Place CTA Green Line station, providing access to downtown Chicago.
Development funding, team members
Built on the site of the former Harold Ickes Homes, Southbridge 1C is part of the larger mixed-income, mixed-use Southbridge Redevelopment Plan. A total of 877 residential units and 65,000 square feet of commercial and community spaces will be developed upon its full build-out. Phases 1A and 1B, consisting of two six-story buildings with 206 mixed-income apartments, were completed in 2021. Commercial tenants for the first phases include Batter and Berries and 24 Life Gym.
Funding for Phase 1C includes $11.9 million in Tax Increment Financing approved by the City Council in July 2025 and a $10 million capital contribution from CHA. The project is also supported by the Chicago Department of Housing, Illinois Housing Development Authority and the U.S. Department of Housing and Urban Development.
The project is expected to create approximately 90 construction jobs and seven permanent positions.
More McHugh Chicago projects
McHugh Construction, a privately-owned company that specializes in multifamily, hospitality and recreational facilities across the U.S., is also active in its hometown of Chicago. The firm has worked with TCB in the past on other affordable housing projects, including 508 Pershing at Oakwood Shores, a 53-unit affordable apartment development in the Bronzeville neighborhood.
McHugh is redeveloping an office-to-residential conversion at 65 E. Wacker Place, where partners Mavrek and ACRES Commercial Realty Corp. are creating 252 luxury units at the historic 24-story building. Mavrek and ACRES secured more than $90 million in financing in September 2025 for the adaptive reuse project. Completion is expected this year.
McHugh Construction was also on the team along with Bowa Construction for 43 Green, a mixed-income TOD project co-developed by The Habitat Co. and P3 Markets in the Bronzeville neighborhood. The builders topped off a 10-story, 80-unit building in December 2023 as part of the project’s second phase. 43 Green’s first phase featured a 10-story building with 99 apartments, half affordable.
