Two Potential Investors Eyeing Funding for Lincoln Yards Project

Two potential investors are eyeing the opportunity to provide funding for the ambitious Lincoln Yards project near Goose Island. According to Crain’s, Florida-based Kayne Anderson Real Estate is exploring the possibility of becoming the primary financial supporter for the project. The development, spanning 53 acres, has faced delays due to shifts in the lending market since its initial announcement in 2018.

With an estimated budget of $6 billion, Sterling Bay, the developer, has completed a lone building at the southern end of the expansive site. Named ALLY and located at 1229 W. Concord Place, the building, designed by Gensler, targets the life-sciences sector, offering 285,000 square feet of space and standing 144 feet tall. However, it has encountered difficulties in securing tenants.

Sterling Bay had unveiled plans for the next phase of Lincoln Yards, which would encompass multiple buildings, including an office tower, two mixed-use residential complexes, a marketplace, an entertainment center, and a sizable central park just north of ALLY. Additionally, the extension of the 606 trail, announced by the city nearly a year ago, would run beneath the highway and railway lines in the vicinity.

Following this, the developer proposed several residential projects surrounding the megadevelopment in a bid to attract investment. These projects include developments at 2033 N. Kingsbury Avenue and 1840 N. Marcey Street. However, Sterling Bay encountered setbacks when it lost its initial financial backers, J.P. Morgan Asset Management and Lone Star Funds. Subsequently, it sought a $300 million investment from the Chicago Teachers’ Pension Fund.

Currently, both Kayne Anderson Real Estate and Darren Sloniger, formerly associated with Marquette Companies, are engaged in discussions to potentially serve as the primary financial backers for the project, although the exact amount of investment remains undisclosed. As reported by The Real Deal, the two parties visited the city in late February to meet with officials regarding the project’s current plans, with no intention to revise the existing agreement.

At present, there is no confirmation regarding whether the two investors will proceed with the development.