McHugh Construction, Powers & Sons Break Ground on Housing Development in Chicago’s South Loop

McHugh Construction, Powers & Sons Break Ground on Housing Development in Chicago’s South Loop
News| April 28, 2026| Jasmine Kilman
Chicago & Midwest + Apartment Buildings

McHugh Construction and joint venture partner Powers & Sons Construction broke ground on Southbridge 1C, the latest phase in the redevelopment of the former Harold Ickes Homes at 2305 S. State Street in Chicago’s South Loop.

The 12-story building will deliver 80 market-rate and affordable rental units, with a mix of studio, one-bedroom and two-bedroom apartments, as well as a 1,500-square-foot retail space. Designed by Gensler and developed by The Community Builders, the 76,000-square-foot building will receive $11.9 million in Tax Increment Financing assistance.

The development cost for Southbridge 1C is estimated at $48.9 million. The project will create 90 construction jobs and seven permanent jobs. 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 spaces. Phases 1A and 1B, two six-story buildings, were completed in 2021, delivering 206 mixed-income apartments.

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