An entity affiliated with San Francisco-based Stockbridge Capital acquired a 767,000-square-foot warehouse that’s being leased by e-commerce juggernaut Amazon.
Stockbridge shelled out $87 million for the warehouse that used to be owned by a BGRE venture, which was formerly known as Brookfield Properties, according to CoStar. The price for the building comes out to around $113 per square foot. The huge warehouse that is used as a stockpile for everything from toothpaste to tech gadgets sits at 1125 Remington Boulevard in the southwestern Chicago suburb of Romeoville. Amazon recently renewed their lease for a decade, all the way through September 2036, according to the Crain’s, who cited a Cushman & Wakefield marketing flyer.
BGRE initially snagged the Amazon warehouse through a portfolio acquisition in 2024, according to Crain’s. At the time, the property was valued at $58 million, according to CoStar data.
A pandemic-era run on warehouse space to satisfy heightened e-commerce demand for delivery led to lots of unused space in the Chicago area as the world returned to normal and foot traffic returned to brick-and-mortar stores. Many of these leases signed in 2021 and 2022 were for five years, and are either expiring or set to expire. As a result, companies are shedding warehouse space, but only for smaller leases, looking to consolidate in larger warehouse space.
The shift in strategy has left a larger number of companies competing for a smaller amount of space. San Francisco-based Prologis has apparently read the tea leaves, and has made two $100 million bets on building massive, 1 million-square-foot warehouses.
Others still think there’s value in the smaller scale warehouse space. Last month, Ares Management snagged a 10-property, 717,000-square-foot light industrial portfolio for High Street Logistics for a similar price to Stockbridge’s purchase: $84 million, or $117 per square foot.
— Hunter Cooke
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