Sterling Bay launches $500M fund, eyeing more acquisitions

The move comes as the developer continues its string of new projects and prep work for Lincoln Yards

TRD CHICAGO /
Oct.October 17, 2018 09:00 AM

Sterling Bay’s Andy Gloor and a rendering of of Lincoln Yards (Credit: Sterling Bay)

Sterling Bay is looking to raise $500 million for its third and largest investment fund as it continues its string of developments and gets set to launch its massive Lincoln Yards project.

The Chicago developer’s fundraising plan was revealed in disclosures filed with the U.S. Security and Exchange Commission, and a Sterling Bay spokesperson said the fund will target new projects and existing ones, according to Crain’s.

Sterling Bay exhausted two previous capital funds, which raised between $90 and $200 million each in 2013 and 2016.

The firm spent some $1.5 billion over the past year on the acquisitions of three trophy office properties alone: the Groupon headquarters at 600 West Chicago Avenue, Prudential Plaza and the office portion of the former John Hancock Center.

At the same time it’s continued to be a key player in the transformation of Fulton Market, launching a number of projects while continuing to acquire more properties.

All those developments would be dwarfed by Lincoln Yards, the sprawling $6 billion mega-project on the North Branch of the Chicago River. Sterling Bay is now navigating through an approval process with area community groups and Alderman Brian Hopkins (2nd).

The new funding round would allow Sterling Bay to move beyond its existing investment partners and tap deep-pocketed investors such as public pension funds and endowments. Sterling Bay in September hired Scott Rafferty as director of investor relations, tasking the former executive at Ken Griffin’s hedge fund giant Citadel with building relationships among those large investors, according to Crain’s.

Rafferty’s hiring is one of several big personnel moves for Sterling Bay.

In July, the firm hired industry veteran Howard Blair as its director of construction. Two months later, its director of development, Erin Lavin Cabonargi, left to start her own development and consulting firm. [Crain’s] — John O’Brien

 

Related Articles

arrow_forward_ios
Liberty Mutual at 27201 Bella Vista in Warrenville (Google Maps)

Chicago’s Q3 suburban office market hits highest vacancy in decade

Chicago’s Q3 suburban office market hits highest vacancy in decade
Sterling Bay CEO Andy Gloor and 1515 West Webster Avenue (Google Maps)

Sterling Bay will sell Lincoln Yards office building for over $100M

Sterling Bay will sell Lincoln Yards office building for over $100M
Plaza on DeWitt, 260 E. Chestnut Street

Downtown condo ponders mask mandate, big penalties

Downtown condo ponders mask mandate, big penalties
Mayor Lori Lightfoot (Getty, iStock)

Lightfoot to propose $94M property tax hike

Lightfoot to propose $94M property tax hike
110 N Carpenter Street in Fulton Market (Photo via Sterling Bay)

Sterling Bay, JPMorgan near deal to sell McDonald’s HQ for $430M

Sterling Bay, JPMorgan near deal to sell McDonald’s HQ for $430M
66 Orland Square with GW Properties CEO Mitch Goltz and BlitzLake Partners CEO David Blitz (Google Maps)

Facing foreclosure, GW Properties hands over Orland Park shopping center

Facing foreclosure, GW Properties hands over Orland Park shopping center
Mayor Lori Lightfoot and a restaurant in downtown Chicago (Getty)

Chicago to ease capacity limits, open bars

Chicago to ease capacity limits, open bars
Homebuyers have flocked to Bronzeville (Credit: Google Maps)

Chicago homebuyers head to Bronzeville for more space

Chicago homebuyers head to Bronzeville for more space
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...