Industrial giant Prologis has sold two warehouses near Chicago for $106.5 million combined, marking two of the largest single-property sales in the area this year amid a slowdown in sale volume.
Affiliates of Denver-based Amstar Group last month paid $54.4 million for an 829,087-square-foot building at 1860 W. Jefferson Ave. in Naperville, Illinois, and paid $52.1 million for a 541,123-square-foot building at 1101 W. Taylor Road in Romeoville, Illinois, according to property records.
The sales by Prologis in separate counties are among the largest in the Chicago area so far in 2024, as part of historically light volume.
There have been a combined $2.3 billion in sales so far this year, compared with $3.3 billion last year. In the two years before that, before increased borrowing costs contributed to a major slowdown in deals, area sales totaled $6.9 billion in 2022 and $8.3 billion in 2021, according to CoStar data.
The Federal Reserve’s recent cut in interest rates after a series of increases has raised hope for a rebound in dealmaking throughout the country and across property sectors.
The Naperville property is fully leased to home furnishings retailer Crate & Barrel, and a small portion of the building serves as a CB2 outlet store. Nearly 15 miles south of there, the Romeoville warehouse is fully leased to logistics firm Geodis, according to CoStar data.
Denver-based Amstar’s deals were backed by an $84 million loan from lenders including Switzerland’s HFI Global, according to property records.
Amstar declined to comment on the deals. Prologis, the world's largest warehouse owner, did not immediately respond to a request for comment from CoStar News on Monday.
Prologis had owned the smaller warehouse since picking it up as part of its buyout of Industrial Property Trust in 2020, and it had owned the Naperville property since acquiring it as a part of the takeover of Duke Realty Trust in 2022, according to CoStar data.
San Francisco-based Prologis, which raised its financial outlook for the year in July because of surging demand, previously has moved to sell what it describes as “non-strategic” properties. That includes a 20-property sale in Minnesota’s Twin Cities area to EQT Group.
For the record
The seller was represented by Cushman & Wakefield brokers Mike Tenteris and Adam Tyler.