In a major shift for one of Chicago’s most ambitious real estate projects, JDL Development is now negotiating to purchase the entire 53-acre Lincoln Yards site, according to sources familiar with the deal.
Earlier this year, JDL was reported to be pursuing just the northern portion of the site. But now, as first reported by The Real Deal, the Chicago-based developer is working to acquire both the northern and southern halves—potentially bringing an end to Sterling Bay’s decade-long vision for the sprawling riverfront property.
Sterling Bay’s original $6 billion plan imagined a glittering, 14.5 million square-foot mixed-use community stretching along the Chicago River, with residential and office towers soaring nearly 600 feet, riverfront parks, retail and entertainment districts, and even a state-of-the-art science campus near North Avenue. But those ambitions have largely stalled over the past few years, leaving much of the site—a former home to the A. Finkl & Sons Steel plant—vacant.
While JDL Development has not commented publicly on the negotiations or future plans, it’s unlikely the firm will revive Sterling Bay’s massive blueprint. Founded by CEO Jim Letchinger in 1993, JDL is best known for high-end residential projects like No. 9 Walton in the Gold Coast and One Chicago, a 2.2 million square-foot mixed-use tower complex in River North. Currently, JDL is also developing North Union, a 3.5 million square-foot community underway near Chicago’s Near North Side.
The Lincoln Yards project has faced numerous roadblocks. Sterling Bay had planned to invest nearly $500 millionupfront to rebuild bridges, roads, and riverfront infrastructure, with reimbursement through a city tax increment financing (TIF) district per a 2019 agreement with then-Mayor Rahm Emanuel. But after the pandemic hit, demand for office space plummeted, potential tenants evaporated, and progress largely stalled. Sterling Bay also alleged that former Mayor Lori Lightfoot’s administration slowed down critical financing approvals—a claim Lightfoot denied.
Today, only a single building—the eight-story, 300,000 square-foot life sciences building at 1229 W. Concord Place—stands completed, and even that remains empty since wrapping construction in 2023.
As of earlier this year, Sterling Bay lost control of the northern portion of Lincoln Yards to Bank OZK, the Little Rock-based lender. Bank OZK confirmed it entered into a contract to sell the land but did not disclose the buyer. Meanwhile, JPMorgan Chase, Sterling Bay’s majority equity partner on the southern half, would oversee any sale of that section.
If the deal closes, JDL’s acquisition could breathe new life into Lincoln Yards, with a focus likely shifting toward residential development over the original office-heavy vision. Changes to the original redevelopment agreement, along with new zoning approvals, will almost certainly be necessary as JDL crafts a new, more realistic path forward for this critical piece of riverfront real estate.
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