Brookfield is ready to build in the Back of the Yards, and wants to ride the momentum of Chicago’s industrial market with plans for a big warehouse campus in the South Side neighborhood on land the real estate firm bought for $24 million.
Several years after Brookfield Properties acquired a 30-acre site at 4435 South Western Boulevard from Zekelman Industries, its plan for three industrial-use buildings totaling 589,000 square feet will go before the Chicago Plan Commission for hearing Thursday, the Chicago Sun-Times reported.
The property, located in the Back of the Yards community and adjacent to commercial buildings like the Home Depot at 47th Street, is currently home to the Wheatland Tube Company, which has operated at the site for years. Records show that the Zekelman Industries-owned manufacturing plant was sold to Brookfield for $24.4 million in 2021 as part of a sale-leaseback deal, allowing Wheatland to remain for the time being.
While office and retail sectors continue to struggle in a post-pandemic world, the city’s industrial market is thriving. In 2022, the Chicago area led the nation with 40.6 million square feet of net absorption for industrial space, according to Colliers.
Brookfield, whose president and CEO of development is Adrian Foley, aims to replace the facility with the three buildings, along with 721 parking spaces, possibly generating as much as 400 jobs. Craig Chico, president and CEO of the Back of the Yards Neighborhood Council, confirmed that Wheatland is leaving the area, but couldn’t provide a timeline for the eventual changes at the site.
“They’re looking for space where they can get all their operations under one roof and be more efficient.” Chico told the outlet, citing a presentation from last year. “Most likely, that will be outside the city.”
Chico added that Wheatland’s departure is unfortunate, but replacing the building with a warehouse facility will bring a slight reduction in air pollution. He also said the high volume of trucks at the site won’t be an issue because they will be able to maneuver within the property, rather than congesting streets.
Brookfield is in the process of a rezoning request, asking for a “business planned development” designation that gives developers six years to begin a project before a site reverts to its former zoning.
Among the sector’s larger recent deals involved Venture One and DRA Advisors partnering to acquire a $369 million industrial portfolio, amassing 54 properties for a combined 2.8 million square feet.
— Quinn Donoghue
Read more
