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Amazon Purchased Massive Chicago Logistics Facility

The retail giant acquired a multi-story warehouse near the Kennedy Expressway for $195 million.

Updated on Oct. 6, 2026 in Commercial

Isometric editorial illustration of a large multi-story industrial warehouse building with a tiered concrete facade, representing urban logistics infrastructure.
Amazon has acquired a 1.2 million-square-foot multi-story logistics facility in Chicago for $195 million to enhance its same-day delivery operations. AI Illustration. Upload story photo >

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

Why it matters

This acquisition represents a strategic move to boost logistics capacity in the Chicago market. By securing a vertical multi-story facility, Amazon aims to optimize its delivery network efficiency within the region.

The 11.5-acre site features 571,000 square feet of dedicated warehouse space and parking capacity for 1,590 cars or 763 vans. Logistics Property Company initially purchased the land for $55 million in 2022 and funded construction with a $150 million loan from Wells Fargo.

The players

Amazon

Amazon is a multinational technology and e-commerce company that provides retail and cloud computing services.

Logistics Property Company

Logistics Property Company is a real estate investment and development firm specializing in logistics facilities.

Wells Fargo

Wells Fargo is a diversified financial services company that provides banking, investment, and mortgage products.

The details

The building utilizes a rare multi-story vertical design that distinguishes it from traditional Midwest industrial properties. Located near Goose Island and the Kennedy Expressway, the structure provides significant transit access to support high-volume logistics.

Timeline

  1. Logistics Property Company purchased the 11.5 acre land tract in 2022.

  2. Developers completed 40 million square feet of buildings in 2023.

  3. The warehouse project reached completion in 2024.

  4. Developers delivered 16.5 million square feet of new buildings in 2024.

  5. Logistics Property Company listed the building with brokers in October 2025.

Roadmap

This acquisition occurs amid a cooling industrial market characterized by a 59 percent year-over-year decline in new industrial deliveries. The move underscores how major retailers are consolidating operations in high-density urban hubs to maintain delivery speed.

Local residents may notice increased logistical activity near the West Division Street corridor as the site transitions from vacancy to an active delivery hub. The facilitys massive footprint and van capacity suggest a significant shift in daily traffic flow for the surrounding area.

The takeaway

Large-scale urban warehouse projects require significant capital investment and unique vertical architectural designs to succeed in dense city environments. This facility showcases how e-commerce firms prioritize proximity to major transit arteries to facilitate rapid delivery standards.

Further reading

For additional context on local property trends, visit the Commercial section.

Source note: This article includes information reported by The Real Deal New York.

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