Target takes aim at massive warehouse in Little Village

The retailer signed a lease at Hilco’s redevelopment of the old Crawford Power Plant, adding to the list of retailers occupying “last-mile” facilities

Chicago /
Feb.February 24, 2020 11:00 AM
A rendering of the Target warehouse at 3501 S. Pulaski Road and Target CEO Brian Cornell (Credit: Hilco Redevelopment, Target)

A rendering of the Target warehouse at 3501 S. Pulaski Road and Target CEO Brian Cornell (Credit: Hilco Redevelopment, Target)

Target has a deal to occupy a massive under-construction warehouse development in Little Village, another sign of Chicago’s continued industrial strength.

But this project is not without controversy, according to Crain’s, which first reported on the lease deal. Developer Hilco Redevelopment Partners has gotten pushback from the community for the $100 million project to turn the former Crawford Power Plant into a massive warehouse. Critics say it will create too much traffic and pollution.

The project will redevelop the property at 3501 S. Pulaski Road. The exact size of the warehouse was not disclosed, according to Crain’s. The lease deal was signed last year, but had not been previously reported, and surfaced in a report from Colliers International. Cushman & Wakefield had been marketing the development.

The deal highlights the demand for “last-mile” warehouses for retailers. Locations close to the city allow companies to restock more efficiently with less travel time. In September, a 219,000-square-foot shipping facility just south of the Chicago River and developed by Scannell Properties traded for $52 million —or $237 a foot.

And this isn’t the first huge location for Target in the Chicago area. Last year, the company inked the year’s biggest lease in the Chicago market on a 1.2 million-square-foot warehouse in Joliet, Crain’s reported, also citing Colliers.

Amazon has also been gobbling up real estate in the area. In late January, the e-commerce giant was considering a $60 million deal to purchase a 40-acre distribution center in Pullman. Earlier that month, it inked a deal to lease a 623,000-square-foot warehouse at Melrose Park. And it also has a 237,000-square-foot facility about 15 miles north of Chicago in Skokie. [Crain’s] — Jacqueline Flynn


Related Articles

arrow_forward_ios
Cresa’s Greg Schementi (Getty Images, LinkedIn/Greg Schementi)
Cresa’s Greg Schementi on why most brokerages have a “conflict of interest”
Cresa’s Greg Schementi on why most brokerages have a “conflict of interest”
Shaya Prager with Highland Landmark II and Corporate 500 (Photo-illustration by Paul Dilakian/The Real Deal)
Shaya Prager takes on the Windy City
Shaya Prager takes on the Windy City
Rendering of the Hemmens Cultural Center (City of Elgin, Getty)
Elgin plans $6M expansion of Hemmens Center
Elgin plans $6M expansion of Hemmens Center
1415 Diehl Road in Naperville and Endotronix's Harry Rowland (JLL, Endotronix)
Medtech company moves to Naperville, expands office footprint
Medtech company moves to Naperville, expands office footprint
Savlan Capital's Zusha Tenenbaum with 12200 South Western Avenue (Loopnet, Savlan Capital)
South Florida buyer pays $6.1M for suburban Chicago medical building
South Florida buyer pays $6.1M for suburban Chicago medical building
320 South Canal Street, 360 North Green Street and 110 North Wacker (320 South Canal, 360 North Green, 110 North Wacker, iStock)
Chicago’s trophy offices in West Loop, River North draw the most leasing
Chicago’s trophy offices in West Loop, River North draw the most leasing
Maxon Shooter's Dan Eldridge and Mundelein Mayor Steve Lentz with 320 Townline Road (Maxon Shooter's Supplies & Indoor Range, Village of Mundelein, Google Maps)
Developer scraps suburban Chicago gun store after mass shootings
Developer scraps suburban Chicago gun store after mass shootings
11535 South Cicero Avenue, Chateau Bu-Sche
Shuttered Alsip banquet hall to hit auction block this year
Shuttered Alsip banquet hall to hit auction block this year
arrow_forward_ios

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

Loading...