Amazon Purchased Chicago Warehouse for $195 Million
The massive new logistics facility will serve as a hub for faster package delivery across the city.
Updated on Oct. 6, 2026 in Commercial
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Amazon has acquired a multi-story warehouse at 1237 West Division Street in Chicago for $195 million. The facility, which has remained vacant since its 2024 completion, is designed to bolster same-day delivery capacity.
Why it matters
This purchase marks a significant investment in local logistics infrastructure to meet growing consumer demand for speed. The site sits near the Kennedy Expressway, positioning it to serve the metro area with increased efficiency.
The 1.2 million-square-foot facility occupies 11.5 acres and includes 571,000 square feet of warehouse space. The site features extensive parking, with capacity for 1,590 cars and 763 vans.
The players
Amazon
A global technology and e-commerce giant that continuously expands its logistics infrastructure to optimize delivery speeds.
Logistics Property Company
A developer specializing in industrial real estate projects that financed and constructed this major multi-story facility.
Wells Fargo
A major financial institution that provided the $150 million construction loan for the warehouse development.
The details
The facility utilizes a rare multi-story vertical design to maximize storage density on the 11.5-acre site. Developers Logistics Property Company previously secured a $150 million construction loan from Wells Fargo to complete the structure. The building remains unoccupied as Amazon prepares to integrate it into its regional delivery network.
Timeline
2022: Logistics Property Company purchased the land tract for $55 million.
2024: The warehouse construction project reached completion.
October 2025: Logistics Property Company officially listed the building with brokers.
The Home Front
This project stands out against the broader regional market, which has seen a 59 percent year-over-year decline in new industrial deliveries. The completion of this site follows a period in 2023 when developers delivered 40 million square feet of buildings.
Residents near the Division Street corridor should prepare for potential shifts in local traffic patterns as the facility moves toward activation. Monitor local news for updates regarding site operations and increased van activity in the surrounding neighborhoods.
The takeaway
This acquisition signals a major commitment to rapid logistics in the Chicago area. Keep an eye on local infrastructure developments near the Kennedy Expressway as new high-capacity hubs change neighborhood traffic dynamics.
Further reading
Learn more about the latest developments in Chicago Commercial.
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