Michelin North America buys 2M-square-foot Wilmington distribution site for $151M

Silver Creek Development sold a 2 million-square-foot industrial facility and an adjacent land parcel to Michelin North America for $151 million, Connect CRE reported. The property at 29900 S. Graaskamp Blvd. in Wilmington, about 60 miles southwest of downtown Chicago, sits on 91 acres and is fully occupied by Michelin.

Built for Michelin in 2015 and expanded in 2016, the building houses inventory for dealers and automakers across the Midwest and western United States. It handles 35% of the company's imported inventory, according to Connect CRE.

Silver Creek bought the property from Transwestern Development Company in 2021 for $126 million. The $151 million price is $25 million more than the 2021 purchase price. That is a gross comparison; it does not adjust for capital spending since 2021 or for any value in the adjacent land parcel. Pacific Life Insurance Company provided $81.9 million in financing for the 2021 acquisition, according to the report.

At $151 million for 2 million square feet, the price equates to about $75.50 per square foot of building area, including the adjacent land. The warehouse has 32-foot clear height, 126 dock-high doors, four drive-in doors and trailer parking.

Because Michelin is the building's sole occupant, the sale carries no leasing risk to underwrite at closing.