Sterling Bay Selling More Properties Near Lincoln Yards

As Sterling Bay continues its search for a financial partner to propel the long-stalled Lincoln Yards megadevelopment, it is looking to offload land next to the 53-acre site.

Facing an impending deadline to pay off debt, Sterling Bay has hired CBRE to sell the properties at 1907 North Mendell Street, 1901 North Elston Street and 1500 West Cortland Avenue, Crain’s reported.

The properties were originally earmarked for inclusion in the ambitious $6 billion mixed-use project. However, amid financial challenges, Sterling Bay has been on a selling spree, as it scrambles to raise adequate funds for the development.

Last year, the firm sold an industrial property near the Lincoln Yards site, at 1854 North Besly Court, to a venture of Scott Goodman’s Farpoint Development and Langdon Partners for $4 million. The firm listed another industrial building, at 1860 North Besly, shortly after.

The recent listings come amid Sterling Bay’s quest to secure a new capital partner after its primary backers, J.P. Morgan Asset Management and Lone Star Funds, sought to sell their stakes in the project. Their divestment signaled waning confidence in the project’s viability and added pressure on Sterling Bay to find alternative financial support.

The properties up for sale are tied to loans from Signature Bank, totaling over $8 million, with multiple extensions granted to Sterling Bay to meet repayment deadlines. The latest extension pushed the deadline to May 2, adding pressure on Sterling Bay to resolve its loan obligations to avoid foreclosure proceedings.

Recent discussions with Florida-based real estate investor Kayne Anderson Real Estate offer a glimmer of hope for Sterling Bay’s partnership prospects. As Sterling Bay navigates the complexities of Lincoln Yards’ financial landscape, it concurrently plans to develop sites along the project’s eastern border, aiming to bring over 1,100 new residential units to the Lincoln Park neighborhood.

CBRE brokers Larry Goldwasser and Tom Svoboda are marketing the three properties, playing up their close proximity to Lincoln Yards and high visibility to hundreds of thousands of daily commuters along the nearby Kennedy Expressway, the outlet reported.

—Quinn Donoghue