Chicago Developers Break Ground on Geothermal Apartment Hub
A new residential project at 410 N. Elizabeth St. uses geothermal wells to reduce energy consumption by 60%.
Updated on Oct. 21, 2026 in Commercial
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Should local building codes require new apartment projects to utilize geothermal heating and cooling systems?
Tree Street Group, Magellan Development Group, and Mark Goodman & Associates are developing a large-scale, 724-unit geothermal apartment complex in Chicago's Fulton Market neighborhood. The innovative system utilizes 22 miles of piping to slash carbon emissions and lower energy costs for residents.
Why it matters
The project serves as a large-scale test for geothermal energy in urban residential construction, aiming to meet stricter energy codes and future-proof building operations. By using the ground as a thermal battery, the developers seek to prove the viability of this technology for high-density, multi-tower developments.
The complex features 65 geothermal wells, each extending 850 feet underground, to support the 383-unit first phase. This system saves 390 tons of carbon annually and reduces site power demand by 1 megawatt.
The players
Tree Street Group
Tree Street Group is a real estate development firm involved in the design and construction of the geothermal apartment complex.
Magellan Development Group
Magellan Development Group is a prominent Chicago-based real estate developer known for high-profile urban residential projects.
Mark Goodman & Associates
Mark Goodman & Associates is a real estate development company collaborating on the technical and structural implementation of the site.
The details
The system operates by circulating water through heat pumps connected to a central geothermal grid, with each well requiring two days to drill. The total project consists of two towers, with the first phase scheduled to provide 383 units of the total 724 planned.
Timeline
March 2028 is the targeted completion date for the first project phase.
Culture Shift
This development moves against the current industry norm where only 1% of buildings in the U.S. have a geothermal heat pump. By scaling this technology for a 724-unit project, the developers are challenging the assumption that geothermal systems are only suitable for low-density or single-family residential properties.
Residents of the new Fulton Market towers may benefit from a 25% reduction in energy costs compared to standard residential buildings. The project also helps set a new benchmark for energy efficiency in the local housing market, potentially influencing future rental utility expectations.
The takeaway
Large-scale geothermal integration demonstrates a growing trend toward sustainable infrastructure in high-density urban environments. Future residents should consider how these energy-efficient systems can lead to long-term reductions in utility expenses and a smaller carbon footprint.
Further reading
Read more about major local developments in our Chicago Commercial section.
Source note: This article includes information reported by Bisnow.
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Should local building codes require new apartment projects to utilize geothermal heating and cooling systems?
