Prologis Plunks Down $100M For Goose Island Warehouse
Prologis paid a hefty price earlier this month for a 339K SF building on Goose Island, according to Crain's Chicago Business. Citing sources familiar with the deal, Crain's reports that the industrial giant forked over $100M to a joint venture of Greenfield Partners and Related Fund Management for a combined warehouse and office property at 930 West Evergreen St.
The sellers had formed e-commerce firm Quiet Logistics in 2019, then signed a long-term lease for 173K SF in the property, which the pair purchased in 2019 for $73M from candy manufacturer Mars, according to Crain's. Mars and several other firms occupy the rest of the building.
The fully leased property guarantees Prologis a steady flow of cash, and the lucrative sale illustrates the desirability of fulfillment and logistics space. That's especially true if it's near affluent areas such as downtown and Chicago's North Side and can be used to complete last-mile deliveries.
"Despite concerns about Cook County tax increases, many users need to locate in the city of Chicago to be close to the area's expansive population," according to a recent report by Colliers International. "This bodes well for the city of Chicago's industrial submarket, particularly in the pockets with newer, more versatile product."
Prologis has been on a bit of an industrial buying spree on Chicago's South Side. In 2020, it bought the five-building, 683K SF Pilsen Industrial Center, as well as the 306K SF 5063 South Merrimac Ave., according to Colliers.
But space on Chicago's North Side is hard to find for tenants and for investors. The vacancy rate now stands at 6.1%, and there hasn't been any new supply added to the submarket in at least three years, Colliers found.