Prologis Sells two Suburban Chicago Warehouses to Amstar Group

Industrial powerhouse Prologis has reduced its holdings in the Chicago area as it continues to fine-tune its portfolio.

The San Francisco-based real estate investment trust sold off two warehouses in Chicago’s southwest suburbs as part of its ongoing plan to divest “non-strategic” assets and recycle capital into new acquisitions and investment opportunities, CoStar reported. Cushman & Wakefield’s Mike Tenteris and Adam Tyler represented Prologis in the transactions.

Denver-based investment firm Amstar Group bought the properties, located in Naperville and Romeoville, for a combined $106.5 million, marking two of the largest single-property deals in the region this year. The acquisitions were financed by an $84 million loan, supported by lenders including Switzerland’s HFI Global.

The Naperville warehouse, spanning 829,000 square feet at 1860 West Jefferson Avenue, was purchased for $54.4 million, about $65 per square foot. The building is fully leased to home furnishings giant Crate & Barrel, with a portion of the space used as a CB2 outlet store.

The Romeoville warehouse, spanning 541,000 square feet at 1101 West Taylor Road, fetched $52.1 million, or $96 per square foot. Logistics firm Geodis is its primary tenant.

Prologis, led by co-founder and CEO Hamid Moghadam, acquired the Naperville warehouse in 2022 as part of its takeover of Duke Realty Trust, and it has owned the Romeoville property since 2020, following its buyout of Industrial Property Trust. The firm still holds over 30 industrial properties in the Chicago area, according to its website. About 12 are near O’Hare International Airport; one is on the Near West Side; and the rest are in the West and Southwest suburbs.

The sales to Amstar are notable not only for their size but also for occurring during a time of limited deal flow in the Chicago industrial real estate market. Industrial property sales in the region have totaled $2.3 billion so far this year, compared to $3.3 billion last year and $6.9 billion in 2022, according to CoStar.

The two warehouses are Prologis’ most recent sales, coming after the sale of 20 properties in Minnesota’s Twin Cities to EQT Group earlier this year. Prologis raised its financial outlook in July, pointing to strong nationwide demand for its properties.

— Andrew Terrell