Chicago Construction News staff writer
The Chicago Department of Housing, the Chicago Housing Authority and development partners broke ground Tuesday on the next phase of the Southbridge redevelopment, an 80-unit mixed-income high-rise that will rise on the former site of the Harold Ickes Homes.
The project, known as Southbridge Phase 1C, is being led by developer The Community Builders in partnership with McCaffery Interests.
The development will convert a long-vacant parcel near West 23rd Street and South State Street into new housing aimed at expanding affordability while boosting economic activity in the South Loop.
“Truly affordable housing is a fundamental human right and is the foundation of a thriving, equitable city,” Mayor Brandon Johnson said in a statement. “The need for more housing reaches every corner of our city, including the vibrant South Loop, which is why I am so proud my administration was able to support this project.”
The building will include 80 rental units — studios, one-bedroom and two-bedroom apartments. Of those, 44 will be set aside for households earning between 30% and 80% of the area median income, including units reserved for Chicago Housing Authority residents with a right of return.
City officials said the project received $11.9 million in tax increment financing approved by the City Council in July 2025, along with a $10 million capital contribution from the housing authority.
“Local government agencies, community stakeholders and residents must work together toward a shared goal that benefits all,” said Department of Housing Commissioner Lissette Castañeda, adding the development will expand housing options near transit.
The building will include about 1,500 square feet of ground-floor retail space, as well as amenities such as a fitness center, bike storage, a package room and a rooftop terrace. The project team also includes contractor partners McHugh Construction and Powers & Sons Construction, along with architect Gensler.
Officials estimate construction will create about 90 jobs, along with seven permanent positions once the building opens.
“We’re proud to support bringing this vision to life through both the building design and the broader master plan, helping advance a new community-centered development in the South Loop.Phase 1C follows the completion of earlier phases that have already brought new residents and retail tenants to the site,” Gensler said in a social media post.
When fully built out, the Southbridge redevelopment is expected to include about 867 mixed-income homes and 65,000 square feet of commercial and community space, part of a broader effort by the city to transform the Loop and surrounding areas into mixed-use residential neighborhoods.
