Flames and smoke poured out of the 84-unit building on the 8000 block of Eighth Street.
Fire officials said the building had significant damage, but some residents may be able to re-enter their apartments after a few days. No injuries have been reported.
According to the Red Cross, as many as 100 people may be displaced by the fire.
On Twitter, the Red Cross said the fire took place near the site of their Sound the Alarm campaign in Chicago's Englewood neighborhood. The event provided free smoke alarms to Englewood residents.
Just a few hours after we launched Sound the Alarm in Chicago & northern Illinois, a 3-alarm fire took place in #Waukegan. We are working with the Fire Dept to support the people in the 84-units that may be affected. THIS is why we want to #EndHomeFires. https://t.co/GnG8kEVkYS— ChicagoRedCross (@ChicagoRedCross) April 28, 2018
The Veterans Assistance Commission of Lake County offered to house any veterans displaced by the blaze at Rodeway Inn on Greenbay Road in Waukegan. Those wishing to take advantage of the offer must provide proof of military service when checking into the hotel and contact the Commission on Monday.