Tall & Urban News

The future of the $6 billion, 53-acre Lincoln Yards project now hangs in the balance, as the site is split between the bank-controlled northern parcel and the southern portion still held by Sterling Bay. A city-approved redevelopment agreement ties both parcels together, particularly in terms of tax-increment financing (TIF) to support necessary infrastructure.

Bank OZK has received strong interest from potential buyers for the 27-acre northern portion of the Lincoln Yards megadevelopment, which the bank seized last month after the developer defaulted on a US$128 million loan. Despite this, the bank says it is in no rush to sell and is seeking the right developer with the capital and expertise to realize the site's potential.

Emphasizing the need for a sponsor capable of working closely with the City of Chicago, Bank OZK CEO George Gleason said the bank will be patient. He acknowledged the complexity of the site but expressed optimism due to early unsolicited interest. Recent engagement with city officials and the bank has not been confirmed.  The city has previously stated their intent to discuss the site’s future with the lender.

Adding to the intricacy is a separate US$125 million loan Bank OZK made to Sterling Bay for a nearby life sciences building, which was completed in 2023 and is currently vacant. That loan matures later in 2025, but OZK leadership noted that each loan is being treated independently.

Sterling Bay had struggled in recent years to secure new financial backing for Lincoln Yards after major investors like J.P. Morgan and Lone Star Funds exited. The developer had approached other potential partners, including the Chicago Teachers’ Pension Fund, without success.

Despite the uncertainty, the importance of city collaboration for the project’s success was confirmed, and the bank maintains a positive outlook on Chicago’s engagement. 

Learn more at Crains Chicago.