Quote:
Originally Posted by Randomguy34
Not including Lincoln Yards, here's a list of Sterling Bay's active projects. This isn't even including all of their purchases of existing buildings.
U/C:
300 N. Michigan
345 N. Morgan
Soon/likely to start:
ALLY (1229 W. Concord)
1000 W. Caroll
1200 W. Caroll
Active proposals:
360 N. Green
330 N. Green
160 N. Morgan
1400 W. North
1245 W. Fulton
1325 W. Fulton
I've heard from Sterling Bay before that they're bullish on an office boom post-pandemic. I'm surprised though they've earned the confidence of J.P. Morgan, they're the primarily financial advisor and backer, to pursue all of these projects. Watching them further grow and establish themselves as a dominate presence in the city's physical, and potentially political, landscape will be a bit terrifying to say the least
Design looks better than I expected. Here's hoping more of the lowrise north lakefront sites finally get developed
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They earned the confidence of JP Morgan long before the pandemic - that's important to remember. Sitting here today, I do not know whether JP Morgan Asset Management (it's important to know which unit you're talking about in a massive financial organization such as that, because it make a real difference) has the same (at least apparent) optimistic outlook that Sterling Bay does. Also, keep in mind most of these are still mere proposals and I certainly suspect they won't be launching many more completely speculative projects in the near-term. Exception could be if they have a truly targeted market such as life sciences with enough of a current strong supply/demand story that lease-up risks seem manageable. That stated, life sciences in general tend to be more build-to-suit-oriented than the office market as a whole given how customized various aspects of their design can tend to be. That's not to say of course there isn't any speculative development, it's just trickier and less prevalent in general.
Another note on this being JP Morgan Asset Management and their current real assets/real estate/office investment strategy and portfolio allocation views - don't get them confused with JP Morgan as an overall corporate entity. Jamie Dimon is clearly very eager to get his employees back in their offices....just a basic philosophical thing with him. Finance and banks in general lean more in that direction and there are certain leaders of those firms in particular - perhaps he's the most prominent example - who are outspoken on that front. And, as an corporate office occupier strategy, clearly that position looks like it will also be put into practice with respect to occupancy decisions the firm will make over the next few years across its millions upon millions of sq ft in its portfolio, with a primary example locally being its apparent likely upcoming decision to anchor a new Loop skyscraper with a massive lease.
None of this of course necessarily reflects JPMAM's thinking on office broadly in its investment portfolio. But, clearly they had seen something they really liked in Sterling Bay, and Fulton Market more generally as a district. And, I don't have the details, but I'm assuming JPMAM didn't write anything approaching a blank check in its JV. I would think JPMAM approves all of the projects it chooses to contribute equity to on a deal-by-deal basis, and if something looks too risky - for whatever idiosyncratic or market-related reason, they can pass on participating. Someone please correct if you know my assumptions here to be off-base in this JV.
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