Amazon Bought Chicago Warehouse for $195 Million

The retail giant acquired a new multi-story facility to help bolster its same-day delivery capacity in the city.

Updated on Oct. 6, 2026 in Commercial

A modern multi-story industrial warehouse building with a gray facade sits next to an elevated highway in a city setting. — Amazon has acquired a multi-story warehouse facility in Chicago for $195 million to enhance its same-day delivery logistics network in the region. AI Illustration. Upload story photo >

Live Poll

Do you trust that large industrial warehouse developments benefit your local community?

Amazon has finalized the purchase of a 1.2 million-square-foot warehouse at 1237 West Division Street for $195 million. The facility, which has remained vacant since its completion in 2024, is designed to serve as a central hub for logistics operations.

Why it matters

This move signals a significant investment in local infrastructure aimed at increasing the speed of same-day deliveries for residents. By securing this multi-story vertical site, the company aims to optimize its distribution network within the densely populated area.

The transaction for the 1.2 million-square-foot facility totaled $195 million, significantly trailing the developer's $205 million expenditure. The site spans 11.5 acres and features specialized parking for 1,590 cars and 763 vans.

The players

Amazon

A global retail and cloud computing company that manages a vast logistics network to fulfill consumer orders.

Logistics Property Company

A real estate developer that manages the acquisition, development, and leasing of industrial properties.

Wells Fargo

A multinational financial services firm that provides commercial lending and construction financing.

The details

The facility at 1237 West Division Street utilizes a multi-story vertical design, a layout that is uncommon for industrial buildings in the Midwest. Developed by Logistics Property Company, the structure includes 571,000 square feet of dedicated warehouse space and was financed in part by a $150 million construction loan from Wells Fargo. The building serves as a massive logistical anchor near the Kennedy Expressway, allowing for high-volume van traffic.

Logistics Property Company purchased the 11.5-acre land tract in 2022.
Developers completed 40 million square feet of buildings in 2023.
The warehouse project reached completion in 2024.
Developers delivered 16.5 million square feet of new buildings in 2024.
Logistics Property Company listed the building with brokers in October 2025.

Money Landscape

This acquisition sits against a cooling industrial property market, which saw a 59 percent year-over-year decline in new deliveries. The deal marks a departure from the rapid expansion pace observed during the 2023-2024 construction cycle.

Local residents may see an increase in the availability of same-day delivery options once this facility becomes operational. While the warehouse purchase is a corporate transaction, the shift in logistics capacity may influence local traffic patterns and delivery service reliability.

The takeaway

This purchase represents a strategic move by the retailer to solidify its footprint in the Chicago logistics corridor. Readers should monitor future job postings or local shipping announcements for signals regarding when the facility will enter active service.