A longtime Greyhound station in the southwest corner of Chicago’s Loop business district is for sale in a deal that could bring in a two-tower multifamily development with more than 1,100 units while leaving an uncertain future for bus riders in the city.

Connecticut-based Twenty Lake Holdings has hired JLL brokers to seek a sale of the 2-acre site at 608 W. Harrison St. as a redevelopment play.

Twenty Lake is believed to be seeking $30 million or more in a sale, most likely to a developer of apartments looking to ride the wave of billions of dollars in real estate investments in a once-sleepy pocket of the Loop along the high-traffic interchange of interstates 90, 94 and 290.

The site could be developed into a pair of apartment high-rises as tall as 450 feet with a combined 1,145 units, according to a preliminary massing study conducted by Solomon Cordwell Buenz and cited in JLL materials presented to prospective buyers.

The property previously was listed for sale in early 2023, but it never sold.

It is going back on the market at a challenging time to sell properties or launch ambitious developments, with rising interest rates dragging down values throughout the country.

But the Greyhound site is being presented as a chance to replace the low-rise structure with apartments serving a growing base of workers and residents in the area.

Big investments have included a nearly $1.3 billion redevelopment of the long-vacant Old Post Office into modern offices by 601W Cos. and a $500 million expansion of lower levels of 110-story Willis Tower by Blackstone Group. New York-based Blackstone bought the former Sears Tower for $1.3 billion in 2015, setting the record for any U.S. office building outside Manhattan.

Chicago developers Riverside Investment & Development and Convexity Properties also recently completed the 52-story BMO Tower trophy office building nearby, while Related Midwest is planning a $7 billion megadevelopment called The 78 on a nearby 62-acre site along the Chicago River.

Riverside and a different partner, Blue Star Properties, are planning a 14-story, 198-unit apartment development just across the expressway from the Greyhound site.

“What used to be a forgotten corner suddenly has a lot of generators for multifamily,” said Tom Kirschbraun, one of the JLL brokers marketing the Greyhound site for sale. “It’s not a conventional location, but now there are clear reasons for it to be developed as multifamily.”

Because it is along the Jane Byrne Interchange, where more than 82,000 vehicles drive by per day, there also is an opportunity for signage revenue in the redevelopment, Kirschbraun said.

Twenty Lake, an affiliate of investment firm Alden Global Capital, paid almost $25 million for the site in December 2022 as part of a 33-property, $140 million purchase of Greyhound facilities throughout the country from U.K.-based FirstGroup.

That company previously sold Greyhound to Germany’s Flix in 2021, and FirstGroup previously sold off other Greyhound facilities before the larger portfolio sale to Twenty Lake, according to The Wall Street Journal, which previously reported that the site was going back on the market for sale. Property sales have left Greyhound with an uncertain future in several cities.

Greyhound leases back several properties that have been sold. Its Harrison Street lease in Chicago runs through October, according to JLL.

It’s unclear what Greyhound plans to do beyond that date, or whether it could negotiate to stay longer as a buyer of the site draws up long-term plans.

Greyhound and Twenty Lake did not respond to requests for comment from CoStar News.

Previously, Greyhound sold off an 8-acre bus maintenance facility in Chicago on Goose Island for $38 million in 2019. The buyer, Canadian developer Onni Group, is in the early stages of a 2,650-unit residential development at the southern tip of the island north of the Loop.

The seller is represented by JLL brokers Kirschbraun, Meredith O’Connor and Jack Hubbard.