Lincoln Yards megadeal on North Side morphs into a tale of two projects
The dormant North Side property once branded for the Lincoln Yards megadevelopment has acquired split personalities — with one entering the city approval process while the other awaits a new owner.
Developer Jim Letchinger has submitted a zoning proposal for the northernmost chunk of the property. Dubbed Foundry Park, his plan follows through on a pledge he made in July to build a “walking” neighborhood on a smaller scale compared with a prior developer’s plan.
Letchinger, CEO of JDL Development, proposes a mix of housing styles. His zoning application calls for up to 3,737 dwellings, from high-rise condos to single-family homes.
Terms given to the city allow for a tower that's close to 50 stories, but Letchinger said Wednesday his tallest structure will be “just under 40 stories.” He said the density he plans will allow for low-traffic streets and easy pedestrian access.
“The retail I propose is all on street level. It’s a place to come and spend the day and use the plaza and Riverwalk,” said Letchinger, who controls the 34-acre parcel with Kayne Anderson Real Estate. They got it for around $84 million from Bank OZK, which seized it from development firm Sterling Bay.
His application calls for 420,000 square feet of retail or commercial space and about 350,000 square feet for offices, which Letchinger said would serve boutique operations such as family investment offices.
His reference to local wealth implies why developers covet a site that has proven hard to build upon. Situated east of the Kennedy Expressway and running almost from North to Webster avenues, the old industrial sector hugs the Chicago River.
Sterling Bay imagined the moneyed crowds of Lincoln Park, Bucktown and Wicker Park populating the place. The firm had the city’s blessing — and a pledge of up to $1.3 billion in tax incentives — for a plan called Lincoln Yards that was studded with riverfront towers.
But the pandemic and higher interest rates conspired against everything, and Sterling Bay lost control of the site this year. However, the company still could have a role in what gets built.
General contractor Novak Construction is the likely buyer of the southern portion, with sources saying Sterling Bay could retain an interest. In 2023, Sterling Bay opened an eight-story office building, the only part of Lincoln Yards it completed. It has no tenants.
Asked if his firm might partner with Novak, Sterling Bay CEO Andy Gloor said, “No role as of now,” in a text exchange with the Sun-Times. On Novak’s plans, Gloor said, “No idea on what Novak wants to do with it. Great guy and is in no hurry.”
The firm's president, John Novak, didn't return calls. The Real Deal Chicago first reported Novak’s involvement with the land.
Gloor’s firm has kept one northernmost piece of Letchinger’s section. It’s a parking lot next to the Chicago hub of shipping firm C.H. Robinson at 1515 W. Webster Ave. The site is zoned for around 400 residential units in a roughly 30-story building.
“We’re working diligently with the city and have strong aldermanic and community support,” Letchinger said. Twenty percent of the units would be affordable, as defined by city ordinance.
He said he hopes to have specifics, with designs by Chicago’s Hartshorne Plunkard Architecture, before the Chicago Plan Commission in January. The commission reviews major projects before they advance to the City Council.
Ald. Scott Waguespack (32nd), whose ward includes the property, couldn't be reached. He has previously spoken in favor of Letchinger’s approach.
Letchinger said his plan can proceed regardless of what happens to the southern section. He said he knows nothing of Novak’s plans.
“Novak felt it was a great price and a great opportunity, and I think he’s right,” Letchinger said.
Sterling Bay’s Lincoln Yards plan called for 6,000 homes. A city official observed that it also called for “two Willis Towers” worth of new offices, an element many deemed impossible once the pandemic emptied downtown buildings.