Sterling Bay Seeks Agreement with Chicago Teachers’ Pension Fund to Rescue Lincoln Yards

Sterling Bay has approached the Chicago Teachers Pension Fund (CTPF) in a bid to accelerate the progress of the Lincoln Yards megadevelopment during a critical period. If the deal materializes, it could potentially impact the original investors of the project.

The Lincoln Yards project, a massive mixed-use development worth $6 billion, has experienced sluggish advancement since its approval in 2019. Now, Sterling Bay is seeking financial support from the CTPF’s investment committee to jumpstart the Lincoln Yards initiative. However, this move could result in losses for the initial backers of the ambitious 53-acre, 14.5-million-square-foot development, as reported by Crain’s.

CEO Andy Gloor of Sterling Bay recently presented a proposal to the committee, suggesting an investment range of $100 to $150 per square foot, totaling over $300 million. This infusion of funds would replace the current financial supporters at discounted rates, revitalizing the project and potentially generating billions of dollars in tax revenue for the city.

The developer’s objectives include consolidating ownership of the Lincoln Yards site, seeking a new capital partner, and resolving a $126 million mortgage associated with a significant portion of the property. While Sterling Bay explores new capital partnerships, it is also approaching its existing investors for additional funding. The company aims to secure $25 million in fresh equity through an “annex fund” from its current investors.