Plan Commission approves development at 39th and State

The Chicago Plan Commission has approved a mixed-use development, dubbed 39th and State, at 3900 S. State. Planned by McLaurin Development Partners, the large project site is bisected by W. Pershing Rd and bounded overall by W. 38th St to the north, W. 40th St to the south, S. State St to the east, and S. Dearborn St and the Metra tracks to the west. 

Designed by Gensler, the project is planned as a two-phase mixed-use development. The first phase, located on the south side of W. Pershing Rd will be a commercial development with 113,000 square feet of commercial space across three independent structures. All of the structures will be one-story tall and served by an expansive parking lot providing 378 parking spaces. 

As designed, the main retail structure will feature 70,000 square feet of space for a Pete’s Fresh Market grocery store, with an attached 15,000 square feet of retail space planned for a hardware store. Along S. State Street, a smaller structure located midblock will feature a 6,000 square foot space for a cafe or restaurant and 2,000 square feet for a bank with a drive through. At the south end of the site along S. State St will be a medical office building measuring 20,000 square feet. 

A future second phase planned for the portion of the site north of W. Pershing Rd will feature a maximum of 517 residential units across multiple buildings. While this phase’s design has not been finalized, the developer plans to dedicate 20% of the units to be affordable to meet ARO requirements. 

To allow for the scope of the $70 million first phase, the developer is seeking to amend the existing Planned Development to revise the site boundaries and rezone the property to C1-3. With Chicago Plan Commission approval secured, the proposed rezoning can seek final approvals from the Committee on Zoning and City Council. Since part of the site is city-owned, the developer will have to enter into a redevelopment agreement to acquire the city-owned land. 

The developer plans to close on the site with the city in early 2027 and begin construction in Q1 2027. Completion of the commercial development would be planned for Q3 2028, with a timeline for the residential development undetermined.