JDL Development in Talks to Buy Lincoln Yards Site in Chicago

The saga of Lincoln Yards may be entering its next chapter, with a new player at the table.

JDL Development is in negotiations to acquire more than half of the stalled Lincoln Yards megaproject site, Crain’s reported. It marks the most significant momentum for the North Branch property since Sterling Bay’s $6 billion vision began to unravel.Chicago-based JDL is working directly with Bank OZK, Sources told the outlet. The lender seized control of the northern half of the 53-acre site in March to satisfy a defaulted $128 million loan from Sterling Bay.

JDL in Talks to Buy Lincoln Yards Land — Renderings of Lincoln Yards (Lincoln Yards)

The lender recorded the property in its books at $84 million and confirmed it has since entered into a contract to sell the land, with closing expected by Sept. 30.

Bank OZK granted JDL a 60-day due diligence window before the firm’s deposit becomes nonrefundable, sources said. That includes time to evaluate the property, raise capital and begin discussions with city leaders over whether its vision fits within the site’s entitlements.

JDL, led by CEO Jim Letchinger, has developed some of the city’s highest-profile residential towers, including One Chicago and No. 9 Walton, and is currently working on the 8-acre North Union development in River North.

If it closes, the deal would give JDL the chance to reshape the city’s most controversial development site, though likely with a scaled-back vision.

Alderman Scott Waguespack, whose ward includes the site, said Letchinger appears to understand “the market won’t bear what Sterling Bay was trying to do.”

He also signaled openness to allowing existing TIF funds to support limited infrastructure improvements, a sticking point that slowed Sterling Bay’s progress for years.

Any development effort would require negotiations over an existing redevelopment agreement that outlines nearly $500 million in infrastructure upgrades to be fronted by the developer, then reimbursed by the Cortland/Chicago River TIF. That agreement may need to be amended if JDL takes over.

City officials have not publicly met with JDL but confirmed a meeting with Bank OZK is forthcoming. The southern portion of the site remains under Sterling Bay’s control.

— Judah Duke