Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty

Yahoo

15-05-2025

The Chicago developer that was negotiating to buy the northern swath of the stalled Lincoln Yards megadevelopment site is now in talks to purchase the entire 53-acre tract, according to sources familiar with the deal.
JDL Development's move to acquire both the northern and southern parts of the site was first reported by The Real Deal.
The pair of agreements would end Sterling Bay's decade-long effort to transform the former industrial land, now mostly vacant, into a glittering, $6 billion, 14.5 million square-foot mixed-use community. Early plans by the developer called for residential and office skyscrapers nearly 600 feet tall, thousands of apartments, riverfront parks, retail, entertainment and a high-tech science hub on the southern end near North Avenue and the Chicago River.
JDL's potential takeover of the full site could kickstart development on land that was once partly occupied by A. Finkl & Sons Steel, a now-demolished steel plant that moved to the Far South Side in 2014.
JDL isn't talking about the potential sales, or any future plans for the site. But the company, founded by CEO Jim Letchinger in 1993, is unlikely to pursue Sterling Bay's costly vision.
Sterling Bay began buying up riverfront properties between North Avenue and Webster Avenue around 10 years ago. But to create a mixed-use dense community, it would have needed to spend nearly $500 million upfront reconstructing neighborhood bridges, roads and the riverfront. According to a 2019 redevelopment agreement the developer forged with Mayor Rahm Emanuel, it would then get reimbursed through a city tax increment financing district.
But potential tenants for the site, wedged between Lincoln Park and Bucktown, were scarce after the pandemic, and most of the work never got underway. Company officials also complained that the administration of former Mayor Lori Lightfoot slowed down financing approval, a charge Lightfoot vehemently denies.
Sterling Bay did complete one building, an eight-story structure dedicated to life sciences that stands alone at 1229 W. Concord Place, but its 300,000 square feet of lab space has been empty since construction wrapped up in 2023.
It's not clear what changes JDL may need from Lincoln Yards' original redevelopment agreement, in addition to new zoning approvals. But the crash of the office market means it's probable the company will put more focus on residential development. The company developed the Gold Coast's No. 9 Walton luxury condominium building and more recently completed the 2.2 million square-foot One Chicago in River North. Its work continues nearby on the North Union development, which will have up to 12 buildings and 3.5 million square feet of space.
Sterling Bay gave up control of Lincoln Yards' northern half earlier this year to its lender Bank OZK. The Little Rock-based bank confirmed in a statement that it entered into a contract to sell the land earlier this month, but did not confirm the buyer.
JP Morgan Chase is the majority equity investor for Lincoln Yards southern half, according to a Sterling Bay spokesperson, and would handle any potential sale of that portion.