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.<\/p>\n
Completed at the end of 2024, the property was the first multi-story logistics facility in the Midwest. However, until now, it wasn\u2019t able to land a tenant.<\/p>\n
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.<\/p>\n
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.<\/p>\n
After sitting empty for more than a year, the developer listed the vacant building for sale with JLL in October 2025.<\/p>\n
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.<\/p>\n
\u201c1237 W. Division Street is incredibly unique and nearly impossible to replicate in Chicago today,\u201d said JLL Managing Director, Kurt Sarbaugh.<\/p>\n
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\u2019Hare and Midway airports are within 14 miles.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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 \u2014 a multi-story warehouse close to the city\u2019s core, rather than a conventional facility in an outlying industrial market.<\/p>\n","protected":false},"excerpt":{"rendered":"
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\u2019t 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…<\/p>\n","protected":false},"author":3163,"featured_media":4469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-7515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-real-estate-news"],"acf":[],"yoast_head":"\n