Amazon Chicago – Amazon has acquired a vacant, multi-story warehouse in West Town for $195 million, marking a push to expand same-day delivery speeds in Chicago.
A towering, vacant structure that has sat empty since its 2024 completion is finally finding its purpose. Amazon confirmed last week it has purchased the two-story, 590,000-square-foot logistics facility at 1237 W. Division St. for $195 million.
The site. located near Goose Island. is set to become a “sub-fulfillment center” dedicated to same-day deliveries. with operations expected to launch between late 2027 and early 2028. For the tech giant. the move is a strategic play to shrink the distance between inventory and front doors. transforming delivery windows from days into mere hours.
“Hacer esto nos permite. efectivamente. entregar en cuestión de un par de horas en vez de un par de días y realmente corta esa distancia que cualquier vehículo —ya sea un camión. una van o un carro— necesita recorrer para llegar a los clientes. ” said Kyle DeGiulio. Amazon’s lead manager for Midwest economic development policy.
Unlike traditional fulfillment hubs that rely on standard company fleets. this facility will lean on Amazon Flex drivers—gig workers using their own vehicles. similar to the model used by ride-share or food-delivery platforms. The company anticipates creating 200 jobs at the site. ranging from fulfillment roles to management. with an average hourly wage of approximately $24. Existing Chicago-based employees will be given the option to transfer to the Division Street location.
The sequence of events for the property reflects a rapid shift in Chicago’s industrial landscape. Logistics Property Co. broke ground on the warehouse in 2022. designing it as the city’s first multi-level industrial site with dual-floor truck docks and over 1. 000 parking spaces. Despite its proximity to the Loop and O’Hare Airport, the building remained dormant after its 2024 completion. Amazon. which had long scouted the Goose Island area. finally saw the property as the ideal fit. citing its visibility from the Kennedy Expressway and the city’s recent infrastructure upgrades. specifically the replacement of the Division Street bridges.
While Amazon already operates a same-day delivery center in Humboldt Park—a 2023 opening that drew vocal opposition from local residents—this new West Town hub is designed to capitalize on a dense consumer market. Marketing materials from the real estate firm JLL previously highlighted the site’s potential to reach an estimated $2 billion in e-commerce sales within a five-mile radius.
As the company prepares to move in, the focus remains on whether the surrounding neighborhood can absorb the logistical shift. DeGiulio noted that the company believes the existing infrastructure is ready for the task. even as it looks to meet the growing consumer demand for groceries and pharmaceutical products delivered with speed. For now. the building remains a silent landmark. waiting for the first wave of Amazon drivers to fill its multi-story docks.
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