Chicago Apartment Project Uses Geothermal Energy System
The new 383-unit development will use underground wells to cut energy usage by 60% for future residents.
Updated on Oct. 21, 2026 in Commercial
Live Poll
Should local building codes require new apartment projects to utilize geothermal heating and cooling systems?
A new two-tower residential development at 410 N. Elizabeth St. in Chicago’s Fulton Market is integrating a massive geothermal heating and cooling system. The first phase, slated for completion in March 2028, will feature 383 apartments connected to an underground thermal battery network.
Why it matters
By leveraging geothermal technology, this development aims to future-proof its energy needs while meeting increasingly stringent municipal energy codes. The design is projected to lower energy consumption by up to 60% and trim energy costs for the building by 25%.
The project uses 65 geothermal wells, each drilled 850 feet deep, and 22 miles of piping to support 724 units across two towers. These installations represent a shift for a sector where only 1% of U.S. buildings currently utilize geothermal heat pumps.
The players
Tree Street Group
A real estate development firm focusing on modern, high-density residential projects.
Magellan Development Group
A developer known for large-scale urban apartment towers and mixed-use properties.
Mark Goodman & Associates
A development entity specializing in Chicago commercial and residential real estate assets.
The details
The system functions as a giant thermal battery by circulating water through heat pumps that exchange heat with the earth. Each well requires over two days of drilling to reach the necessary depth before connecting to the central grid. This infrastructure allows the building to offset significant carbon output while managing the high energy demands typically associated with large-scale multi-family housing.
Timeline
March 2028 is the targeted completion date for the first project phase.
The Home Front
Large-scale residential projects are increasingly adopting geothermal systems to comply with modern energy mandates that target HVAC efficiency. This shift directly addresses the reality that HVAC systems currently account for 40% of commercial building energy consumption.
Prospective renters should consider how high-efficiency mechanical systems influence long-term utility costs in modern apartment buildings. While the building manages the geothermal infrastructure, residents can benefit from the reduced load on the facility's overall energy footprint.
The takeaway
Large-scale geothermal integration demonstrates a growing trend toward sustainable, high-efficiency infrastructure in urban residential towers. Renters and buyers should prioritize learning how a building's mechanical system impacts utility stability when evaluating future housing options.
What happens next
The second phase of the two-tower development is planned to commence approximately one year after the completion of the first phase.
Further reading
Learn more about the latest developments in Commercial real estate projects across Chicago.
Source note: This article includes information reported by Bisnow.
Live Poll
Should local building codes require new apartment projects to utilize geothermal heating and cooling systems?
