JLL Arranges $195M Sale of Chicago Multi-Story Logistics Facility by Logistics Property Company

CHICAGO, Oct. 6, 2026 – JLL Capital Markets announced today that it arranged the $195 million sale of 1237 W. Division St., a 571,423-square-foot multi-story logistics facility in Chicago. JLL represented the seller, Logistics Property Company, in the transaction. Amazon, identified in JLL's announcement as a global e-commerce company, acquired the property.

The sale price equates to approximately $341 per square foot. JLL said the property is the first multi-story logistics facility developed in the Midwest.

JLL Team Led Logistics Property Company Sale

The JLL Capital Markets team was led by Managing Director Kurt Sarbaugh and Senior Managing Director and Industrial Group Co-Lead John Huguenard, along with Senior Managing Director Sean Devaney, Managing Director Ed Halaburt and Senior Director Ross Halaburt. Vice Chairman Dan McGillicuddy, Vice Chairman Leslie Lanne and Executive Vice President Sam Brashler from the JLL Brokerage team also played a significant role in the project, according to the firm.

"1237 W. Division Street is incredibly unique and nearly impossible to replicate in Chicago today," said Sarbaugh.

"We've seen growing demand from occupiers looking to acquire facilities that play a critical role in their operations, particularly in locations where replacement opportunities are limited," added Huguenard. "For many users, ownership provides long-term control of strategically important real estate while supporting future operational growth."

Property Details: Two-Level Warehouse Near Downtown Chicago

The facility sits on a site of approximately 11.5 acres near Goose Island, about 2.5 miles from Chicago's central business district. It includes 571,423 square feet of warehouse space across two levels and features:

• 34-foot-plus clear heights
• 56 loading docks
• 135-foot truck court depths
• A dedicated second-floor truck ramp
• 10,000 amps of power
• Separate circulation for trucks and passenger vehicles
• Covered truck court areas

A 292,500-square-foot rooftop parking deck and an adjacent five-level parking structure provide capacity for up to 1,590 automobiles or 763 vans, supporting last-mile distribution operations in a dense urban setting. The rooftop deck is equal to about 51% of the warehouse building's reported floor area.

The property is less than one mile from Interstate 90/94 and provides access to both O'Hare International Airport and Midway International Airport. More than 1 million residents live within a five-mile radius, including in the Gold Coast, Old Town, Lincoln Park, Wicker Park and Bucktown neighborhoods. The property also benefits from a Class 6B tax abatement and Enterprise Zone incentives.

Development History and Cost

Logistics Property Company purchased the development site for $55 million in 2022. Public records indicate development costs of at least $205 million, meaning the $195 million sale price is roughly $10 million below reported development cost before financing, carrying costs or other project expenses. A $150 million Wells Fargo construction loan was reported for the project. The sale ranks among the more expensive single-asset industrial transactions in Chicago.

Chicago Industrial Market Context

Chicago's industrial market entered 2026 with improving demand and constrained availability. The region recorded approximately 5.1 million square feet of net absorption through mid-2026, up 146% from the same period a year earlier. Vacancy measures were generally in the high-4% to low-5% range, below the national industrial vacancy rate of approximately 6.5% to 6.9%. Another market report placed Chicago vacancy at 4.8% for the third consecutive quarter and said new leasing activity reached its strongest midyear level since 2022.

Average Chicago industrial asking rents were approximately $7.55 per square foot, up about 1% year over year and 2.8% quarter over quarter. Those market-wide figures are not directly comparable with the Division Street sale price because the asset is a specialized, urban, multi-story facility with substantial parking and infrastructure.

Capital Markets Backdrop and Occupier Ownership

The sale comes as transaction activity recovers from the higher-interest-rate slowdown. JLL reported that its Capital Markets Services revenue rose 19% year over year in local currency in the second quarter of 2026, led by investment sales, debt advisory and equity advisory. Investment sales revenue increased 20%, debt advisory revenue increased 44% and equity advisory revenue increased 53%. JLL's total second-quarter revenue reached approximately $6.9 billion, up 11% from a year earlier.

The transaction reflects an occupier strategy of owning strategically important real estate rather than relying solely on leasing. Huguenard said ownership can provide long-term control of important sites while supporting future operational growth.

About JLL

JLL (NYSE:JLL) is a global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 112,000 as of June 30, 2026. JLL's Capital Markets group has more than 3,000 specialists worldwide with offices in nearly 50 countries.

Sources

• JLL news release: https://www.jll.com/en-us/newsroom/jll-arranges-195m-sale-of-chicago-trophy-logistics-facility