A full building permit has officially been issued for a new mixed-use development at 2600 N. Clark Street in Chicago’s Lincoln Park neighborhood, clearing the way for construction of a five-story apartment and retail building on the long-vacant former Dunlay’s On Clark site.
Developed by Initium Development, the project will bring 48 new residential units and ground-floor commercial space to the prominent corner of Clark Street and Wrightwood Avenue. The permit was issued on May 18, roughly three months after the application process began in February, and carries an estimated construction cost of $10 million.
Designed by SEEK Design + Architecture, the development was scaled back from an earlier seven-story, 66-unit proposal before receiving City Council approval in 2025. The updated plan includes 34 standard apartments and 14 efficiency units spread across the upper four floors. Approximately 10 units will be designated as affordable housing to comply with the city’s Affordable Requirements Ordinance.
The ground floor will feature a large retail space, co-working amenities, bicycle storage for residents, a residential lobby, and a 10-car parking garage accessed from Wrightwood Avenue and the adjacent alley.
Construction is already underway following earlier foundation and demolition permits issued in January. General contractor ENC Construction has begun foundation and excavation work on the site, which previously housed Dunlay’s On Clark, Dave’s Records, and several other longtime neighborhood businesses.
The new development is expected to open in mid-2027 and will sit within walking distance of CTA Brown, Purple, and Red Line stations, along with several major bus routes serving the North Side corridor.
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