Amazon has purchased the two-story warehouse at 1237 W. Division St. near Goose Island in Chicago for $195 million. The 571,423-square-foot building sold for about $341 per square foot, which is below the roughly $205 million that developer Logistics Property Co. spent to build it.

Completed at the end of 2024, the property was the first multi-story logistics facility in the Midwest. However, until now, it wasn’t able to land a tenant.

Logistics Property Co. developed the project on the idea that a vertical warehouse could bring distributors closer to central Chicago, instead of forcing them to operate from distant suburbs.

The format is more common in Asia and Europe and has mostly appeared in U.S. coastal markets like Seattle, New York City and San Francisco.

After sitting empty for more than a year, the developer listed the vacant building for sale with JLL in October 2025.

Amazon plans to use the property as a same-day delivery hub for Chicago. The company expects the facility to create about 200 jobs with operations set to begin in late 2027 or early 2028.

“1237 W. Division Street is incredibly unique and nearly impossible to replicate in Chicago today,” said JLL Managing Director, Kurt Sarbaugh.

The 14-acre property is about 2.5 miles from the Loop and less than a mile from interstates 90 and 94. Both Chicago O’Hare and Midway airports are within 14 miles.

Features include 34-foot clear heights, 56 loading docks, 135-foot truck courts, a ramp for trucks to reach the second floor and 10,000 amps of electrical capacity. Additionally, a 292,500-square-foot rooftop parking deck and an adjacent, five-level garage can accommodate 1,590 cars or 763 vans.

Designed by Ware Malcomb, the building has the benefit of a Class 6B tax abatement and Enterprise Zone incentives. Construction was financed with a $150 million loan from Wells Fargo; Inland Bank & Trust; and Associated Bank.

Chicago industrial properties continue to trade below the national average. According to Yardi Research data for August, the year-to-date average sale price in the Chicago metro was $100.15 per square foot, compared with $138 nationally. While Amazon paid more than three times the Chicago average, the comparison covers a very different type of property — a multi-story warehouse close to the city’s core, rather than a conventional facility in an outlying industrial market.