The Real Deal Chicago

Hilco seeking tax incentive for 1M sf spec warehouse on Southwest Side

The developer is asking for a property tax break for its massive “last mile” facility on Pulaski Road
By Joe Ward |
Research by Haru Coryne
January 11, 2019 03:30PM

Hilco Redevelopment Partners CEO Roberto Perez and a rendering of Exchange 55 (Credit: LinkedIn)

Hilco Redevelopment Partners is asking the city for a property tax break for its planned 1-million-square-foot warehouse development on the Southwest Side.

City officials in September gave Hilco the green light to redevelop the former coal-powered Crawford Power Plant near Little Village. The firm plans to spend $100 million on a complex featuring 52-foot ceilings, 188 truck loading berths and 255 parking spaces.

Now, Hilco is asking the city for an incentive that reduces its property tax assessment to 10 percent for the first 10 years of the building’s life, instead of the normal assessment rate of 25 percent.

The City Council’s Committee on Economic, Capital & Technology Development will consider the request Tuesday.

The building is expected to be completed in 2020, CEO Robert Perez previously said. A company representative did not immediately return a request for comment.

The warehouse is being built on spec but will cater to “last-mile” e-commerce distribution, company officials said.

Low vacancy rates and rising demand from growing e-retailers has caused Chicago’s industrial market to become one of the hottest in the country. Leasing activity in the market during the third quarter of 2018 was at its highest point in three years.

Hilco’s project is in a swath of the Southwest Side that’s seeing a flurry of industrial development. Nearby, Venture One and USAA are developing a $17.5 million speculative logistics complex at 2445 South Rockwell Street, and Marina Cartage landed its first tenant this week for the massive industrial complex it built on spec at 2075 West 43rd Street.