Chicago’s Sterling Bay Lists Entitled Land Near Lincoln Yards

Sterling Bay is putting yet another piece of its long-stalled Lincoln Yards project up for sale.

The Chicago-based developer tapped JLL to market a 1.56-acre parcel at 2033 North Kingsbury Street, located on the eastern edge of the embattled megaproject, Crain’s reported.

JLL’s Dan Reynolds is marketing the property, which has flexible zoning and sits within walking distance of planned infrastructure and housing improvements in the Foundry Park area.

Sterling Bay won city approval last year for a 355-unit residential tower on the site but has now opted to offload the land as part of a broader retreat from its original $6 billion vision for a 53-acre mixed-use campus along the North Branch of the Chicago River. The listing follows a string of unwinds for Sterling Bay.

In March, the firm handed over control of the project’s northern half to its lender, Bank OZK, after defaulting on its loan. That site is now under contract to JDL Development and Kayne Anderson Real Estate, which plan to rebrand the area as Foundry Park and pursue a more residential-focused plan that includes up to 3,000 units.

Sterling Bay still controls the southern half of Lincoln Yards in partnership with JPMorgan Asset Management, though that relationship has also reportedly frayed amid stalled progress and missed infrastructure milestones. The Kingsbury parcel lies just south of the OZK-controlled Foundry Park site, raising the possibility that a buyer could leverage the entitled tower site to tap into the momentum of the new project.

The Kingsbury property is one of several sites Sterling Bay is now trying to shed, including former holdings in Fulton Market. While the firm remains active — it’s in talks to buy Boeing’s West Loop office tower — the move to unload prime development parcels near Lincoln Yards reflects a broader retraction after years of delays, financing hurdles and political backlash.

Sterling Bay bought the Kingsbury parcel from A. Finkl & Sons in 2016 but has yet to break ground, according to the outlet.

— Judah Duke