The popularity of steel modular construction is on the rise. This paper presents a new and innovative modular steel construction which uses state-of-the-art cast-steel connectors and hollow structural steel members. Structural behavior of a typical corner connection of this modular construction to be used in an assisted living facility was studied when the connection is subject to axial tension and axial compression loads. The study was completed using both experimental method and a numerical method. Six full-scale specimens were built and tested under axial compression and axial tension. It was found that this innovative modular connection satisfactorily carries the design loads. Based on the parametric study completed using finite element method, two significant design improvements are recommended. The cast-steel connector can be made 20% lighter without compromising the strength needed to satisfy the design loads. The locations of the connecting screws can be adjusted to achieve a higher stiffness and load carrying capacity of the connection when subjected to axial tension. This paper presents the new modular construction method in brief, the test method and test results, development of finite element model, and parametric study.