USAA, Venture One plan spec warehouse on South Side

UPDATE, 1:30 p.m. June 8: USAA Real Estate and Venture One Real Estate are planning a 174,000-square-foot speculative industrial building on the South Side.

Venture One Real Estate transferred the property at 2445 South Rockwell Street to USAA for $5.6 million, yet the two remain partners on the project, Venture One Principal Ryan Stoller said. They are planning a $17.5 million logistics center on the 8.2 acre property.

USAA secured an $11.6 million construction loan on the property from Wells Fargo.

The Chicago Plan Commission approved the construction, and in April the City Council voted to support a county tax incentive for the project that would reduce its property tax assessment over the course of 12 years. The incentive was expected to save the developers a total of $2.2 million.

Construction on the project has begun, Stoller said, with delivery expected in the first quarter of 2019.

This story has been updated to reflect the nature of the transaction between USAA and Venture One.