Warehouse developer buys 6-acre McKinley Park site for “1-hour shipping site”

Logistics Property Company bought the property on the same block as the 2013 “ice palace fire”

Chicago /
Feb.February 06, 2019 03:00 PM

Aaron Martell, Logistics Property Company Executive Vice President for Midwest region and a rendering of the warehouse planned for 3711 South Ashland

Industrial developer Logistics Property Company bought a 6.4-acre lot on the city’s Near South Side, where it plans to break ground this summer on a speculative 137,000-square-foot “last mile” shipping warehouse, the company announced.

The Chicago-based firm paid $3.6 million to acquire the site at 3711 South Ashland Avenue from Matthew Joyce, a Hinsdale-based businessman who collects salvaged business remains, according to Cook County property records. Joyce sold the property under the name Ice Fire LLC, a reference to a massive January 2013 fire on that block whose response from firefighters left a vacant warehouse adorned with a layer of ice.

The warehouse was later demolished, leaving the whole block vacant.

Logistics Property Company bought the site about six weeks after it acquired a 102-acre tract in south suburban Country Club Hills, one of the largest undeveloped stretches in Cook County, where it plans to build multiple logistics warehouses totalling about 900,000 square feet.

Combining the sprawling suburban facility with a smaller foothold in the city’s McKinley Park neighborhood supports the developer’s “hub-and-spoke strategy, from mega warehouses to last mile infill connections,” according to a company press release. Aaron Martell, the firm’s executive vice president for the Midwest, said the smaller warehouse could enable “one-hour delivery” service.

Industrial builders usually locate shipping warehouses close to highways to give delivery truck drivers quick access, but Logistics Property Company touted the Ashland Avenue warehouse’s proximity to nearby bus and train lines, saying they would make it easier for the building owners to find available workers. The site is about a mile south of the Stevenson Expressway, and two miles west of the Dan Ryan Expressway.

The facility will include 26 loading docks with two “drive-in doors,” according to a marketing brochure. A 130-space parking lot is also planned on the site.

Construction is expected to complete by early 2020. The developer hired Tim McCahill and Terry Grapenthin of Lee & Associates to lease the property.

More than 11 million square feet of speculative industrial space was being built toward the end of last year, as industrial developers rush to meet insatiable demand for e-commerce logistics space. The region’s industrial vacancy rate has approached record lows, and Chicago-area landlords leased more than 10 million square feet of new or expanded industrial space during the third quarter alone last year.

As potential sites for campus-size distribution hubs become more scarce, warehouse developers have increasingly sought out smaller “infill” sites closer to the city.


Related Articles

arrow_forward_ios
Chicago Alderman Walter Burnett (Getty, Burnett)
“Folks can still afford to live there”: Q&A with Chicago Alderman Walter Burnett
“Folks can still afford to live there”: Q&A with Chicago Alderman Walter Burnett
McCormick Place
Chicago’s downtown hotels in distress as conventions, travel remain slow
Chicago’s downtown hotels in distress as conventions, travel remain slow
Sterling Bay submits new design for Fulton Market office building
Sterling Bay submits new design for Fulton Market office building
Sterling Bay submits new design for Fulton Market office building
Jason Koehn and 975 Sterling Avenue (Google Maps)
Albion scores $94.2M loan for Chicago’s second-largest multifamily deal this year
Albion scores $94.2M loan for Chicago’s second-largest multifamily deal this year
Skokie lab buildings sell for $75M reflecting area’s commitment to life sciences
Skokie lab buildings sell for $75M reflecting area’s commitment to life sciences
Skokie lab buildings sell for $75M reflecting area’s commitment to life sciences
Former Obama Fundraiser Tony Rezko’s son paid $13.7M for 22-story building site
Former Obama Fundraiser Tony Rezko’s son paid $13.7M for 22-story building site
Former Obama Fundraiser Tony Rezko’s son paid $13.7M for 22-story building site
Allstate CEO Thomas Wilson and 2775 Sanders Road in Northbrook (Getty, Allstate)
Allstate to sell suburban Chicago headquarters after more than 50 years
Allstate to sell suburban Chicago headquarters after more than 50 years
Illinois receives 2 bids for James R. Thompson Center
Illinois receives 2 bids for James R. Thompson Center
Illinois receives 2 bids for James R. Thompson Center
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...