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Prologis makes $35M last-mile industrial play in Pilsen

955 West Cermak Road and Chicago & Prologis CEO Hamid Moghadam (Credit: Colliers International and Prologis)

955 West Cermak Road and Chicago & Prologis CEO Hamid Moghadam (Credit: Colliers International and Prologis)

Industrial giant Prologis picked up a two-building complex in Pilsen, expanding it reach in the city amid a continuing hot industrial market, particularly for last-mile properties.

San Francisco-based Prologis paid $35.2 million for 929 and 955 West Cermak Road, property records show. At a time when there is strong demand for industrial assets, the deal marks a loss for the seller RREEF Property Trust, which acquired the buildings in 2016 for $38.2 million from International Airport Centers LLC. RREEF is a subsidiary of Deutsche Bank asset management arm DWS Group.

Together, the properties measure a little over 239,000 square feet and are two miles from the Loop. Both are fully leased for eight years, according to Colliers International, which marketed the properties.

Prologis, RREEF and Colliers did not immediately return requests for comment.

The vacancy rate for industrial assets in the Chicago area are at an 18-year low, thanks to the demand from the growth in e-commerce.

In late 2018, Prologis snapped up a Medical District warehouse for $7.1 million — nearly twice what seller R2 Companies had paid for the asset in 2014. Prologis also reportedly is in talks to buy Industrial Property Trust’s $4 billion warehouse portfolio.

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