Sterling Bay Sells More Properties Near Lincoln Yards

As Sterling Bay continues its search for a financial partner to continue the long-term development of Lincoln Yards, it is looking to unload land around the 53-acre site.

Facing a debt settlement deadline, Sterling Bay has hired CBRE to sell properties at 1907 North Mendell Street, 1901 North Elston Street and 1500 West Cortland Avenue, Crain’s. information.

The properties were originally earmarked for inclusion in an ambitious $6 billion mixed-use project. However, amid financial challenges, Sterling Bay has been on a sales spree, struggling to raise enough funds for development.

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

The recent listings come amid Sterling Bay’s quest to find a new capital partner after its main backers, JP Morgan Asset Management and Lone Star Funds, wanted to sell their stakes in the venture. Their withdrawal signaled a decline in confidence in the project’s viability and increased pressure on Sterling Bay to seek alternative financial support.

The properties for sale are tied to loans from Signature Bank, totaling more than $8 million, and multiple extensions have been granted to Sterling Bay to meet payment deadlines. The latest extension pushed the deadline to May 2, increasing pressure on Sterling Bay to settle its loan obligations to avoid foreclosure proceedings.

Recent discussions with Florida-based real estate investor Kayne Anderson Real Estate provide a glimmer of hope for Sterling Bay’s partnership prospects. As Sterling Bay navigates Lincoln Yards’ difficult financial environment, it plans to simultaneously develop a site on the project’s eastern border, aiming to bring more than 1,100 new housing units to the Lincoln Park neighborhood.

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

-Quinn Donoghue