The original Lincoln Yards plan, led by Sterling Bay, faced significant obstacles that brought the ambitious project to a standstill. Rising interest rates, financing difficulties, and political complications created a perfect storm of challenges. The COVID-19 pandemic dealt another blow, fundamentally changing office market demand and stalling momentum across Chicago’s real estate development sector.
Now, a Lincoln Yards update brings renewed hope to the stalled development. JDL Development, partnering with Kayne Anderson Capital, has stepped forward with Foundry Park — a reimagined vision for the northern portion of the original site. This new approach focuses on creating approximately 3,300 residential units across 28 acres of prime riverfront property.
Foundry Park Lincoln Yards represents more than just a name change. It signals a strategic shift toward a more realistic, community-focused development model that addresses the shortcomings of its predecessor.
You’ll discover how this Chicago real estate development pivot could finally unlock the potential of one of the city’s most promising sites.
Background of Lincoln Yards Development
Sterling Bay’s Lincoln Yards is one of Chicago’s most ambitious redevelopment projects, targeting a 70-acre industrial site along the North Branch of the Chicago River. The original vision was to transform the former A. Finkl & Sons steel mill location into a vibrant urban district featuring:
- Residential towers with thousands of housing units
- Commercial office space targeting tech and life sciences companies
- Entertainment venues including retail shops and dining establishments
- Public amenities such as parks and riverwalk access
Acquisition and Planning Efforts
Sterling Bay moved aggressively to acquire properties across the site, positioning themselves to create what they claimed would be the largest and most lucrative development in Chicago’s history. Their initial planning efforts included a controversial proposal for a stadium to house the Chicago Stars women’s soccer club, which later evolved into discussions about an arena for the Chicago Fire soccer team.
TIF Approval and Controversy
The project gained significant momentum when the Chicago City Council TIF approval came through in 2019. This approval included unprecedented public subsidies of up to $1.3 billion from tax-increment financing (TIF), making it one of the largest TIF deals in Chicago’s history. The tax-increment financing controversy Chicago residents witnessed centered on concerns about corporate giveaways and the substantial infrastructure costs taxpayers would shoulder.
Political Support and Opposition
Political support came from various quarters, but opposition emerged from community groups who questioned the wisdom of such massive public investment in a private development. Neighborhood organizations particularly objected to the arena proposals, citing concerns about traffic, noise, and whether new construction would fit appropriately within the surrounding community character.
Financing Model Decision
Sterling Bay’s approach involved demanding their own financing model, insisting they would pay for everything upfront rather than accepting the city’s traditional TIF payment structure. This decision would later prove problematic as market conditions shifted.
Impact of COVID-19 on Development
The COVID-19 pandemic fundamentally altered the development landscape. The virus changed how Americans live and work, creating lasting impacts on office market recovery that Sterling Bay hadn’t anticipated. Life sciences sector expansion slowed dramatically, compounded by federal research grant cuts that reduced demand for the specialized office space Sterling Bay had prioritized.
Despite completing one building designed for life sciences research, Sterling Bay struggled to attract tenants. The combination of pandemic-related market shifts, rising interest rates, and their aggressive financing commitments created mounting pressure that would eventually derail their ambitious plans for the site.
Challenges and Setbacks in Lincoln Yards Progress
The ambitious Lincoln Yards project began unraveling as multiple pressures converged to create what Alderman Scott Waguespack would later describe as “too big to fail, too aggressive to succeed.” Sterling Bay’s rapid property acquisition strategy, while initially appearing bold and decisive, exposed the developer to significant financial vulnerabilities that would prove insurmountable.
Financial Pressures Mount
Rising interest rates created a perfect storm for Sterling Bay’s financing model. The developer had committed to paying for infrastructure improvements upfront, demanding their own financing structure rather than accepting traditional TIF payment schedules. When Mayor Lori Lightfoot’s administration refused to provide front-loaded TIF payments, Sterling Bay found itself caught between escalating borrowing costs and insufficient cash flow to service its debt obligations.
The COVID-19 impact on real estate market Chicago accelerated these financial difficulties. Office space vacancy downtown Chicago reached concerning levels as remote work became normalized, fundamentally altering demand projections that Sterling Bay had built its business model around. The pandemic didn’t just change market conditions—it rewrote the entire playbook for urban development.
Political Complications Emerge
Alderman Scott Waguespack inherited Lincoln Yards through Chicago City Council’s ward remap process, creating an unexpected political dynamic. The 32nd Ward alderman found himself managing a project he hadn’t originally championed, while community groups intensified their objections to the proposed arena plans.
Neighborhood resistance to the Chicago Fire arena proposal created additional headaches for Sterling Bay. You could see the mounting opposition as residents voiced concerns about traffic, noise, and the project’s scale relative to surrounding neighborhoods.
Life Sciences Gamble Fails
Sterling Bay completed only one building at Lincoln Yards—an office venture designed for life sciences research. This structure sat empty as the slow expansion of life sciences sector failed to materialize as projected. Federal research grant cuts further dampened demand, leaving Sterling Bay with a completed but unleased asset that generated no revenue.
The life sciences bet represented a critical miscalculation. Sterling Bay financial troubles stemmed not from external market forces alone, but from incomplete preparation and overly optimistic sector projections.
Bank Seizure Marks the End
By 2021, Sterling Bay’s inability to afford debt refinancing reached its inevitable conclusion. Bank OZK seized the Lincoln Yards property, leaving the development site fenced off and overgrown. The Lincoln Yards delays had transformed from temporary setbacks into project failure, creating uncertainty about the future of this prime riverfront real estate.
The seizure highlighted how quickly ambitious development projects can collapse when financing structures prove inadequate for changing market conditions.
Introducing Foundry Park: A New Chapter for Lincoln Yards
The Foundry Park development represents a strategic reimagining of Lincoln Yards’ northern section, bringing fresh leadership and refined vision to Chicago’s most ambitious riverfront project. JDL Development has stepped forward as the primary developer, partnering with Kayne Anderson Capital to provide the substantial funding needed for this billion-dollar transformation.
This partnership marks a significant departure from Sterling Bay’s approach. JDL Development brings extensive experience in mixed-use urban projects, while Kayne Anderson Capital offers the financial stability that the original Lincoln Yards project desperately needed. Their collaboration focuses on creating a more balanced, community-oriented development that addresses the concerns raised during Sterling Bay’s tenure.
The Vision Takes Shape
Foundry Park will transform the historic 28-acre riverfront site where the A. Finkl & Sons steel mill once operated. The development plans call for approximately 3,300 residential units spanning various housing types, from high-rise towers to single-family townhomes. This diverse housing mix represents a more nuanced approach to urban development than the original Lincoln Yards concept.
The project extends beyond residential spaces to include:
- Office complexes designed for modern workplace needs
- Retail shops integrated throughout the development
- Hotel accommodations with approximately 180 keys
- Public amenities woven into the urban fabric
Architectural Innovation with HPA
Hartshorne Plunkard Architecture (HPA) serves as the design firm behind Foundry Park’s innovative approach to mixed-use urban living. HPA’s involvement brings a focus on creating spaces that blend seamlessly with Chicago’s existing neighborhoods while establishing a distinct riverfront identity.
The HPA architecture design firm emphasizes sustainable design principles and community integration. Their plans incorporate stepped building profiles that respect the surrounding area’s scale while maximizing riverfront access. This design philosophy directly addresses previous community concerns about development density and neighborhood compatibility.
Strategic Location Advantages
The former A. Finkl & Sons steel mill location provides unique advantages for urban redevelopment. The site’s industrial heritage allows for substantial infrastructure improvements while its riverfront position offers unparalleled connectivity to Chicago’s trail systems and waterfront amenities.
JDL Development project updates indicate the company recognizes the site’s potential to serve as a bridge between established Lincoln Park neighborhoods and emerging North Side communities. The Kayne Anderson Capital funding partnership ensures the financial resources exist to execute this comprehensive vision without the funding pressures that plagued the original development.
This Lincoln Yards update signals a more measured approach to large-scale urban development, one that prioritizes community integration and financial sustainability over aggressive timelines and speculative construction.
Detailed Site Plans and Construction Phases of Foundry Park
The site plans Lincoln Yards replacement reveal a carefully orchestrated development strategy that divides the 28-acre riverfront property into distinct phases, each designed to maximize the unique characteristics of the former A. Finkl & Sons steel mill location.
Phase One: The Eastern Triangle
The construction phases Foundry Park begin with the triangular lot positioned east of Southport Avenue, where JDL Development plans to construct four towers ranging from 8 to 38 stories. This initial phase represents the most ambitious portion of the development, featuring:
- Four residential towers with varying heights to create visual interest and accommodate different housing needs
- 180-key hotel designed to serve both business travelers and tourists exploring Chicago’s North Side
- Substantial office space targeting life sciences and technology companies
- Commercial retail integrated into the ground floors of select buildings
The underground parking garage Lincoln Yards component addresses one of the most critical infrastructure needs, providing approximately 800 vehicle spaces beneath the development. This subterranean approach preserves valuable surface area for public amenities while ensuring residents and visitors have convenient parking access.
Architectural Design Elements
The corner towers incorporate stepped podiums that create natural transitions between the taller structures and street-level activity. These stepped designs serve dual purposes: they reduce the visual impact of the towers on surrounding neighborhoods while providing dedicated space for commercial operations including restaurants, retail shops, and professional services.
Central Park Integration
At the heart of the first phase sits a two-acre public park that functions as more than just green space. This central amenity connects to a broader park system featuring:
- Playground areas designed for families with children
- Dedicated dog parks serving the growing pet-owning population
- Riverwalk access linking directly to the Chicago River
- 606 Trail extension creating seamless connectivity to the popular elevated park system
Western Development Areas
The residential towers Lincoln Yards concept extends west of Southport Avenue, where the development takes on a more neighborhood-friendly scale. This section includes:
- Two mixed-use mid-rise buildings balancing density with community character
- 28 townhouses providing ground-level living options
- 19 single-family homes offering traditional residential choices
- Additional park spaces maintaining the green corridor theme
South Cortland Expansion
The southernmost portion of Foundry Park focuses primarily on residential development, featuring six mid-rise buildings ranging from 7 to 30 stories. These structures run parallel to the continued 606 Trail extension, ensuring residents have direct access to Chicago’s expanding network of elevated parks and walking paths.
Cross-River Development
Across the Chicago River, the plans include a 12-story office building paired with a 35-story residential tower featuring a lifestyle fitness center. This cross-river component creates a visual anchor point while providing additional density and amenities that support the broader Foundry Park community.
The phased approach allows JDL Development to respond to market conditions and community feedback while maintaining momentum on this transformative project that promises to reshape Chicago’s North Side riverfront.
Public Amenities and Infrastructure Enhancements in Foundry Park Plan
The public park Lincoln Yards component represents a fundamental shift from Sterling Bay’s original vision, prioritizing community-centered design over purely commercial interests. JDL Development has positioned green spaces as the backbone of their development strategy, creating interconnected recreational areas that serve both residents and the broader North Side community. You’ll find these spaces strategically distributed throughout the 28-acre site, ensuring every residential building maintains proximity to outdoor amenities.
Key Features of the Public Park Component
- Community-centered design
- Interconnected recreational areas
- Proximity to outdoor amenities for every residential building
The 606 Trail extension Chicago initiative stands as perhaps the most significant infrastructure enhancement within Foundry Park. This elevated trail system, which currently terminates at Walsh Park, will seamlessly continue through the development, creating an uninterrupted active transportation corridor. The extension connects Lincoln Park, Bucktown, and Wicker Park neighborhoods while providing cyclists and pedestrians direct access to the Chicago River waterfront. You can expect dedicated entry and exit points integrated into the development’s design, eliminating the need for street-level crossings that could disrupt the trail experience.
Benefits of the 606 Trail Extension
- Uninterrupted active transportation corridor
- Direct access to Chicago River waterfront for cyclists and pedestrians
- Elimination of street-level crossings for a seamless trail experience
Southport Avenue commercial space development transforms this corridor into a vibrant mixed-use artery extending from its current terminus to Cortland Street. The street design incorporates protected bike lanes that complement the elevated trail system, creating multiple transportation options for residents and visitors. Ground-floor retail spaces along Southport Avenue will house restaurants, cafes, and neighborhood services, establishing a walkable commercial district that reduces dependency on vehicle transportation.
Features of Southport Avenue Commercial Space Development
- Vibrant mixed-use artery extending from current terminus to Cortland Street
- Protected bike lanes complementing elevated trail system
- Ground-floor retail spaces housing restaurants, cafes, and neighborhood services
- Walkable commercial district reducing dependency on vehicle transportation
The Chicago Department of Transportation has collaborated extensively with JDL Development on comprehensive Chicago Department of Transportation intersection redesign plans that address connectivity challenges west of the Chicago River. These improvements focus on creating safer pedestrian crossings and enhanced traffic flow patterns that accommodate increased residential density. Key intersection modifications include:
- Enhanced crosswalk timing at major intersections to support increased foot traffic
- Dedicated turning lanes to prevent traffic backup during peak hours
- Improved sight lines through strategic landscaping and signage placement
- Coordinated traffic signals that prioritize pedestrian and cyclist safety
The riverwalk component extends Chicago’s existing waterfront trail system, providing direct access to kayak launches and fishing areas. This connection integrates Foundry Park into the city’s broader recreational infrastructure, allowing residents to access Navy Pier and downtown Chicago via continuous waterfront pathways. The riverwalk design includes native plant landscaping that supports local wildlife while creating natural stormwater management systems.
These infrastructure enhancements position Foundry Park as a model for transit-oriented development in Chicago, demonstrating how large-scale residential projects can strengthen rather than strain existing neighborhood resources.
Future Outlook: Economic Impact and Market Positioning Post-COVID
Demand for multifamily housing on Chicago’s North Side continues to rise as young professionals and empty nesters look for alternatives to traditional downtown living. Foundry Park is strategically located to take advantage of this demographic shift, with around 2,800 residential units in various types of housing. The development includes a combination of high-rise towers, mid-rise buildings, townhouses, and single-family homes, providing options for different income levels and lifestyle preferences.
North Side’s Appeal Post-Pandemic
The North Side has become even more attractive since the pandemic, with residents prioritizing access to outdoor spaces, walkable neighborhoods, and closeness to both downtown and suburban amenities. Foundry Park’s location by the river and its extensive park system directly cater to these preferences while also offering the urban conveniences that influence rental and purchase decisions in today’s market.
Adapting Office Space for Hybrid Work Reality
The recovery of the office market in Chicago after the pandemic faces specific challenges as companies adopt flexible work arrangements. Foundry Park’s office components reflect this new reality by incorporating strategic sizing and positioning. Instead of pursuing large office towers that were common before 2020, the project includes smaller, more adaptable office spaces designed for hybrid teams and collaborative work environments.
The 12-story office building across the river from the main development site represents a measured approach to commercial space. This scale allows for easier tenant attraction while avoiding the vacancy risks that larger downtown office buildings face. Companies looking for modern spaces with outdoor access and parking convenience are finding these suburban-style office environments increasingly appealing.
Economic Catalyst Through Mixed-Use Integration
The retail and hospitality elements within Foundry Park have positive economic effects that extend beyond the development itself. The planned 180-key hotel will cater to both business travelers and leisure visitors exploring attractions on Chicago’s North Side. This hospitality component will create job opportunities while supporting local restaurants and entertainment venues.
Retail spaces integrated into the stepped podiums of corner towers provide convenient services for residents while generating activity at street level. These commercial components do not directly compete with established retail areas on the North Side but instead complement existing businesses through strategic positioning along Southport Avenue.
An update on Lincoln Yards shows how flexible development strategies can breathe new life into stalled projects. The billion-dollar investment from JDL Development and Kayne Anderson Capital demonstrates confidence in Chicago’s long-term growth potential despite recent economic uncertainties. This financial commitment will lead to construction jobs, permanent employment opportunities, and increased property tax revenue that benefits the wider North Side community.
The phased approach of the development allows market conditions to influence timing and tenant mix, reducing financial risks while keeping progress towards completion on track.
Conclusion
The latest news on the Lincoln Yards development update reveals a significant change from Sterling Bay’s ambitious but troubled vision to JDL Development’s practical approach with Foundry Park. This shift shows how effective collaboration between developers and the city can reshape Chicago’s urban landscape when both sides prioritize sustainable growth over speculative ventures.
JDL’s partnership with city planners represents a new model for large-scale development in Chicago. You can see this coordination in their careful integration of residential comfort with commercial vitality – from the stepped podium designs accommodating retail spaces to the thoughtful placement of green infrastructure connecting existing trail systems. The developers didn’t just propose another mega-project; they crafted a community-centered vision that addresses real market demands.
The future plans for the Lincoln Yards redevelopment in Chicago now focus on creating an authentic neighborhood character instead of imposing corporate monuments. The success of this approach could influence how Chicago handles future waterfront developments, proving that mixed-use projects can thrive when they respect existing community fabric while introducing modern amenities.
The story of the Lincoln Yards Update serves as a case study in urban resilience. When one vision fails, the underlying potential of prime real estate and strategic location remains. Foundry Park’s emphasis on human-scale development, integrated parks, and diverse housing options positions it to become a template for sustainable urban growth across Chicago’s evolving neighborhoods.
