Latest news with #JDL
Chicago Tribune
11-07-2025
- Business
- Chicago Tribune
Former Lincoln Yards site to become smaller, walkable residential community, developer says. ‘Bigger is not necessarily better.'
A Chicago developer has negotiated a deal to purchase the northern half of the stalled Lincoln Yards megadevelopment site. JDL Development said Thursday it will give the site a new name, and instead of the grandiose vision pursued by the original developer Sterling Bay, which lost control of Lincoln Yards earlier this year, promises to build a modest-size, walkable residential community. 'Everything we build is going to be purposeful, and blend in with the neighborhood and the surrounding area,' said Jim Letchinger, CEO of JDL Development, who pictures mostly mid-rise residential buildings, with perhaps one or two skyscrapers. 'It will be much more appropriate, and we do hope to also create a very strong street retail environment. It's all about creating a neighborhood, not about trying to build a trophy for JDL.' Letchinger said the new 31-acre development, called Foundry Park, will eventually total about 2,000-3,000 units, including single-family homes, condos, rental apartments, townhomes and affordable housing. A nearly 40-story tower is also possible, but no decisions have been made. The company's gambit opens a new chapter in the decadelong saga to redevelop the vast stretch of land along the North Branch of the Chicago River, sandwiched between Bucktown and Lincoln Park. Neighborhood advocates said they like the idea of scaling back Sterling Bay's original plans, and new owners mean the community now has another chance to shape the development. 'I always thought Sterling Bay's plan was simply too big, so I'm not surprised their approach did not work out,' said Juanita Irizarry, a former member of the Lincoln Yards Community Advisory Council, a body of community residents, advocates, urban planners and other experts created by former Mayor Lori Lightfoot in 2019. JDL Development and its partner Kayne Anderson Real Estate expect to close the deal by the end of September. They did not disclose how much they will pay for the property. The firms wanted to purchase Lincoln Yards' entire 53 acres, but negotiations with J.P. Morgan Asset Management, which controls the southern half, have so far been unsuccessful. 'That's OK,' Letchinger said. 'Thirty-one acres is a lot, so we're working with city officials on the northern section. They say their No. 1 goal is to start building.' A spokesperson for the Chicago Department of Planning and Development said 'it would be premature for DPD to comment at this time.' JDL is best known for developing the Gold Coast's No. 9 Walton luxury condominium building and more recently completed the 2.2 million-square-foot One Chicago in the River North neighborhood. 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's original 14 million-square-foot proposal, unveiled in 2019, called for residential and office skyscrapers, some nearly 600 feet high, thousands of apartments, riverfront parks, retail, entertainment, a high-tech science hub and an extension of The 606 trail. A project that dense would also have required costly new infrastructure, including new bridges, roads and a reconstructed riverfront. The plan was controversial from the start. Sterling Bay forged a redevelopment agreement with the city in 2019, just before former Mayor Rahm Emanuel left office. The company proposed spending nearly $500 million upfront on neighborhood infrastructure before getting reimbursed from a city tax increment financing district. The strategy angered many community groups and activists, who said TIF financing is supposed to be reserved for blighted communities, not affluent areas like Lincoln Park. 'We wanted Lori Lightfoot to hold off on agreeing to what Mayor Emanuel had put together and take more time to decide if that was the right approach,' Irizarry said. Sterling Bay ran into difficulties from the start. Lightfoot was skeptical about Lincoln Yards' long-term prospects, leading to public disagreements with the company about how to kick-start development. The pandemic then crushed the office market, soaring interest rates helped make it more difficult to secure investors and most of the land was left vacant. Letchinger said Foundry Park will not include any office towers, and scales back Sterling Bay's residential plan. The development will be less dense and generate less traffic, avoiding the need for a new bridge and other infrastructure, possibly freeing up the TIF dollars for other uses. 'Bigger is not necessarily better,' Letchinger said. 'The last developer wasn't able to execute their plan, and candidly, I don't think it was a workable agreement.' Instead of building an entirely new bridge, Letchinger said the developers might renovate an old railroad swing bridge that connects the site's northern and southern sections into a river-crossing pathway for bikes and pedestrians. 'Not only does this bridge still work, it's a true work of art,' he said. Other details on JDL's plan, including the number of buildings, their locations and sizes, can only be filled in after consultations with city planners, neighborhood groups and local Ald. Scott Waguespack, 32nd, Letchinger added. 'I am pleased to see progress on the site with JDL and Kayne Anderson,' said Waguespack in a prepared statement. 'We will be working closely with the surrounding communities and city officials to revitalize the area with new housing and development that will help grow our local economy.' A scaled-back version of Lincoln Yards has a greater chance of success, said Jonathan Snyder, executive director of North Branch Works, a nonprofit advocate for economic development along the Chicago River, but he and other neighborhood advocates will also push JDL to bring employment opportunities to the area, once home to A. Finkl & Sons Steel, a now-demolished steel plant, and many other businesses. 'I am not talking about a new giant steel mill,' Snyder said. 'I appreciate that they're scaling down the project, but I think there is still going to be room for some neighborhood-friendly industrial uses, such as a brewery.' A brewery would provide decent jobs and complement existing neighborhood businesses, especially music venues such as The Hideout and The Salt Shed, an entertainment hub in the former Morton Salt warehouse complex, Snyder said. Snyder said he hopes JDL will allow community members to sit at the table as plans take shape. 'It would be terrific to reestablish the (Lincoln Yards Community Advisory) Council,' which lapsed after most development activity ground to a halt, Snyder said. 'It wasn't something that stood in the way of development. We just helped represent the community and tried to make (Sterling Bay's plan) better.' Letchinger said robust participation is encouraged at all of their developments. 'We've always been willing to meet with community members and stakeholders,' he said. 'We always learn something, so projects always get tweaked and improved.' Adding thousands of residents to the neighborhood will still be a challenge, said Brian Comer, president of the Sheffield Neighborhood Association, as some streets like Cortland Street are already frequently clogged with traffic, and local schools don't have room for new students. 'Oscar Mayer (Magnet School) is packed to the gills,' Comer said. 'There was not overwhelming support for Sterling Bay's plans, but everybody wants development on the site. Nobody's running away from that. So, I look forward to seeing Jim's vision and hope it fits in better with the community.'
Miami Herald
15-05-2025
- Business
- Miami Herald
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
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. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
15-05-2025
- Business
- Yahoo
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
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.
Chicago Tribune
15-05-2025
- Business
- Chicago Tribune
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
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.
Yahoo
12-05-2025
- Business
- Yahoo
Swath of Lincoln Yards site, still mostly empty 6 years after winning City Council approval, could be sold
The long-stalled Lincoln Yards megadevelopment could soon find a new owner as Chicago's JDL Development looks to close a deal to buy a large swath of the North Side site. The company is assessing the feasibility of buying the 53-acre site's northern half, which developer Sterling Bay surrendered to lender Bank OZK earlier this year, according to a source familiar with the potential deal. JDL has stayed mum about the possible sale and what it might do with the empty plot of land along the North Branch of the Chicago River north of Cortland Street. What sort of changes JDL may need from Sterling Bay's original redevelopment agreement with the city, and any new zoning approvals it may need, are not clear. JDL, founded by CEO Jim Letchinger in 1993, has forged a reputation as a leading residential builder. It 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. 'JDL really understands that specific submarket, and the type of buildings developed by JDL will fit well within the neighborhood,' said Mike Senner, vice chairman of Colliers, a commercial real estate firm. Bank OZK confirmed in a statement that it entered into a contract to sell the land earlier this month, but did not confirm the buyer. The deal marks a turning point for Sterling Bay's high-profile, almost entirely unrealized decade-long bid to develop the land. The company originally had a sweeping vision for the sprawling parcel: a $6 billion, 14.5 million square foot campus featuring a fleet of buildings towering up to 600 feet, 6,000 new residential units and added commuter infrastructure. That vision was buttressed by the promise of staggering city subsidies. Emanuel and the City Council approved in 2019 a tax increment financing district, which could have reimbursed Sterling Bay for up to nearly $500 million in road, bridge and riverfront improvements the developer would have needed to pay for up front. But the big dreams have been backed up by little construction. Six years after the development won City Council approval, only one building has been completed. And a slowdown in the life sciences industry left that eight-story structure with nearly 300,000 square feet of lab space empty since its 2023 completion. Sterling Bay faced many other obstacles. The pandemic gutted demand for the envisioned office buildings, and rising interest rates scared off potential investors. Company officials also complained the administration of former Mayor Lori Lightfoot slowed down financing approval. Those troubles forced Sterling Bay to surrender the northern portion of its land in March to its lender, Bank OZK, a transfer made in lieu of foreclosure, Crain's Chicago Business reported. A Sterling Bay spokesperson said the company still controls the southern half of Lincoln Yards, and that portion is not part of JDL's potential deal. 'A sale really isn't a surprise,' said Jonathan Snyder, executive director of North Branch Works a nonprofit that promotes economic development along the north branch of the Chicago River. 'The site's been empty for years, and there's been nothing going on. They have no tenants.' 'We genuinely wanted to see the area support job growth,' he added. 'At the time, the life sciences building was a good idea: money was allocated by the federal government to fight the COVID pandemic, but once vaccines were created, the funding slowed, and pharmaceutical companies stopped their rapid expansion.' The sale could be a way to finally kick-start development at the site, once partly occupied by A. Finkl & Sons Steel, a now-demolished steel mill that relocated to the Far South Side in 2014. But progress depends on JDL having the ability to finance and execute a plan. 'That would be huge,' said Dominic Soltero, vice president with CBRE, who has marketed properties near Lincoln Yards. 'It would mean it's getting some fresh love, and we need something to happen over there.' The sale could force JDL to win new approval from City Hall for its own yet-to-be-revealed plans, placing power to shape the development in the hands of Ald. Scott Waguespack, 32nd, and Mayor Johnson. Johnson's administration is signaling that it is time to reimagine the long-anticipated Lincoln Yards plan. Before news of the sale broke, Planning and Development Commissioner Ciere Boatright told the Sun-Times the plans are in need of a 'hard reset.' 'Do I think there's still opportunity for projects to advance on that site? Yes,' Boatright said. 'It's a great site with great opportunity. Do I think it'll be that much office? Absolutely not. Do I think it's appropriate to readjust the development plan? Absolutely.' Waguespack has opposed another Sterling Bay development on land adjacent to the Lincoln Yards property. The company's $340 million plan to build a pair of 16- and 21-story skyscrapers would be out of scale compared with the surrounding neighborhood, he said in a December statement. If the sale of Lincoln Yards' northern half does go through, the surrounding community needs to be involved in planning for what comes next, said Allan Mellis, who has lived in the Wrightwood area near Lincoln Park for more than 50 years. 'The alderman would need to call a community meeting because things have changed a lot,' he said. 'It would be a whole new ballgame.'
