Amazon Pays $195M for Chicago Industrial Facility
The asset is the first multi-story logistics property in the Midwest.
Amazon has purchased a 571,423-square-foot logistics facility in downtown Chicago, for $195 million, or approximately $267 per square foot. Logistics Property Co. sold the asset in a transaction arranged by JLL Capital Markets.
The 2024-completed property is Midwest’s first multi-story logistics facility, located on a 14-acre site at 1237 W. Division St., 2.5 miles away from the metro’s CBD. Logistics Property purchased the land and received approval for the development in 2022. Ware Malcomb is the architecture firm behind the industrial project.
Benefitting from Class 6B tax abatement and Enterprise Zone incentives, the industrial building features 34-foot-plus clear heights, 56 loading docks, 135-foot truck court depths, 10,000 amps of power and a truck ramp on the second floor. Additional amenities at the LEED-certified facility include a 292,500-square-foot rooftop parking deck and an adjacent five-level parking structure with a capacity for 1,590 automobiles and 763 vans.
READ ALSO: What Amazon’s Supply-Chain Push Means for Industrial
Located just off Interstate 90, the property is within 14 miles of both O’Hare International Airport and Midway International Airport. Other major thoroughfares in the area include Interstate 290 and Illinois State Routes 50, 64 and 171.
Managing Directors Kurt Sarbaugh and Ed Halaburt, Senior Managing Directors John Huguenard and Sean Devaney and Senior Director Ross Halaburt led the JLL Capital Markets team, while Vice Chairmen Dan McGillicuddy and Leslie Lanne and Executive Vice President Sam Brashler represented JLL Brokerage. The teams arranged the deal on behalf of the seller.
Chicago industrial keeps adding to cart
Chicago ranked second nationwide in industrial investment sales through August, with transactions totaling more than $3.1 billion, trailing only Dallas’ $4 billion, according to the latest Yardi Matrix report. Industrial assets in Chicago changed hands at an average of $100 per square foot, below the national average of $138.
With its urban infill location and amenities supporting last-mile distribution activity, Amazon’s latest acquisition aligns with the growing demand for strategically located industrial assets. The sector increasingly favors properties that combine efficient distribution capabilities, adequate infrastructure, reliable power capacity and supply-chain resilience.
The distribution giant continues to expand, with plans to invest $15 billion in warehouse and distribution properties, focusing on last-mile deliveries. The company is also showing increased interest in multistory industrial developments, having recently begun planning a 710,000-square-foot project in San Francisco.
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