Logistics Property Co. sells Chicago multistory warehouse for $195 million

Logistics Property Co. sold 1237 W. Division St., a 571,423-square-foot warehouse on Chicago's near west side, for $195 million, according to the real estate publication IREI. The trade arrived without a cap rate or a buyer's name, and IREI describes the building as the first multistory logistics facility developed in the Midwest.

The site is roughly 2.5 miles from Chicago's central business district and less than a mile from Interstate 90/94, with access to both O'Hare and Midway; IREI describes the surrounding population as one of the country's largest consumer and labor bases. Two levels of warehouse space rise to 34-foot-plus clear heights behind 56 loading docks, with 135-foot-deep truck courts, 10,000 amps of power, and covered truck court areas where truck and passenger vehicles circulate separately. Parking is stacked rather than paved: a 292,500-square-foot rooftop deck plus an adjacent five-level structure hold up to 1,590 cars or 763 vans, the capacity large last-mile operations need when the footprint is dense.

At $195 million, the trade prices the warehouse at about $341 a square foot. That is the only pricing handle the report offers: no cap rate, no occupancy figure, no buyer's identity, and no development cost, leaving that per-foot number to carry a load it would not normally carry in a single-asset industrial trade.

Industrial is repricing in two directions: urban vertical logistics clearing at scarcity levels while commodity flex and older product trade at vacancy discounts. A near-west-side building on land that is hard to replicate, built upward because the site is land-constrained, falls on the scarcity side of that split, and $341 a foot is consistent with it. One trade, with no income figure attached, cannot establish where the line between those two markets sits.

Whether a second Midwest project follows this one is the real test. If $341 a square foot is enough to make stacking warehouse space on expensive infill land pencil, the next developer in the region has a benchmark to underwrite against. If it is not, 1237 W. Division St. remains the format's only Midwest evidence for a while longer, and the next multistory trade elsewhere will be the one that sets the real comparables.