Chicago Developer Nears Full Lincoln Yards Acquisition After Years of Stalled Project

Chicago-based JDL Development is in advanced talks to acquire the entire 53 to 55-acre Lincoln Yards site, a stalled $6 billion megadevelopment on the city's North Side formerly led by Sterling Bay. JDL's possible purchase includes both the northern portion, recently taken back by Bank OZK from Sterling Bay, and the southern portion, currently controlled by Sterling Bay and investor J.P. Morgan Asset Management, with financial backing from Kayne Anderson Real Estate. This acquisition could simplify negotiations with the city and potentially shift the project's focus from Sterling Bay's original dense, mixed-use vision with residential skyscrapers up to 595 feet tall to a more residential-centric, scaled-down development. Sterling Bay's decade-long effort to develop Lincoln Yards was hindered by high upfront infrastructure costs, scarce post-pandemic tenants, and local government financing delays, resulting in only one completed building, a vacant life science research facility. JDL, known for residential projects in Chicago, has not disclosed specific plans for Lincoln Yards but is expected to pursue a different approach than the original ambitious master plan. The combined sale price for the entire site is estimated to be close to $140 million, representing a significant loss for Sterling Bay's investors.