John Novak Strengthens Grip on Chicago River

John Novak is snapping up more distressed Sterling Bay property in Chicago’s North Side.

Novak Construction’s latest acquisition came at a $6 million price tag, according to CoStar. In addition to snapping up parts of the southern half of the beleaguered Lincoln Yards megadevelopment, Novak and affiliates have acquired properties at 1685 North Elston Avenue and 1907 North Mendell Street. Novak has now purchased four properties so far around the former megadevelopment site in addition to its purchase of the Lincoln Yards site.

What, exactly, Chicago-based Novak is planning for the satellite properties and the former Lincoln Yards site along the Chicago River is still unclear. Sterling Bay’s ambitious plans for the development on the North Side came at their own expense, as the original Lincoln Park developer has listed virtually all of the properties close to the site at a discount from the original purchase price.

Novak’s Lincoln Yards buy amounted to $34 million for 18.4 acres, well south of the $200 million estimated price Sterling Bay and JP Morgan paid. Before the Novak deal, the pair attempted to sell the same parcel to JDL and Kanye Anderson for around $60 million. Kanye and JDL eventually bought parts of the northern 30 acres of Lincoln Yards. In January, Novak told The Real Deal that their 18.4 acres of the former megadevelopment site was the most land his firm had ever purchased.

The ambitious but ultimately unsuccessful Lincoln Yards was initially set to be a $6 billion, 50-acre mixed-use development where the Chicago-based developer once pitched a $6 billion, 53-acre mixed-use district spanning roughly 14.5 million square feet. The slow pace of development proved fatal to Sterling Bay’s hopes, and Bank OZK annexed the northern portion through a deed, in lieu of foreclosure.

No plan has been publicly discussed, but Novak Construction is certainly fortifying their position along the Chicago River. With more Sterling Bay properties in the area still listed for sale, there’s a chance Novak could make his burgeoning North Side holdings larger.

— Hunter Cooke