ProLogis Acquires Land For Major New Distribution Park Serving BNSF Logistics Park-Chicago
Land Position At Joliet Arsenal Site Can Support Up To 10 Million Square Feet Of Industrial Development
DENVER, June 11 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), the world's largest owner, manager and developer of distribution facilities, announced today that it has acquired 184 acres in Wilmington, Illinois, for a new distribution park serving Logistics Park-Chicago, BNSF Railway Company's largest intermodal facility in the Chicago area.
The park will be located at the former Joliet Arsenal site, approximately 60 miles southwest of Chicago on Interstate 55. Along with the acquired land, ProLogis has optioned an additional 591 acres at the same location and plans to expand the park through phased development over time.
The first phase of development at the park, to be called ProLogis Park Arsenal, will comprise more than 3.2 million square feet of industrial space at full buildout, with a total expected investment of over $120 million. Future phases on the optioned land will accommodate approximately 6.8 million square feet of additional warehouse space.
"BNSF's intermodal facility is a vital link in the North American supply chain," said Doug Kiersey, ProLogis senior vice president and regional director of capital deployment. "It serves as a key distribution hub for containerized goods flowing from West Coast seaports through the inland port of Chicago to markets throughout the eastern third of the U.S. Over time it will play an even greater role, as BNSF proceeds with plans to expand the capacity of its rail network serving Chicago.
"ProLogis is fortunate to have secured such a substantial land position in close proximity to the BNSF facility, given the increasingly scarce supply of industrially zoned property in the area. We believe ProLogis Park Arsenal will quickly establish itself as one of the premier distribution sites in greater Chicago, and we expect strong demand from our target customers at this location."
BNSF operates one of the largest rail freight networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The company opened Logistics Park-Chicago (LPC), in 2002. It offers a direct rail link to the L.A./Long Beach port system, the nation's largest by container volume, as well as the ports of Oakland, Portland, Seattle and Tacoma. Once arriving at the LPC, containerized products are taken to nearby distribution warehouses for breakdown and shipment via truck to retail stores and other destinations.
The new ProLogis park will be located inside a state-designated Enterprise Zone and also benefit from a local tax-abatement program. Companies that rent distribution space inside the park are pre-approved for lowered property taxes, sales tax exemptions and tax credits for job creation. "The reduced tax structure within the park should serve as a significant inducement for companies looking to establish large-scale distribution operations in the Chicago market," Kiersey said. "We believe it will enhance customer demand at the site and spur economic development that benefits the city of Wilmington and Will County."
ProLogis Park Arsenal is located at the site of the former Joliet Arsenal, a U.S. Army munitions plant that opened at the start of World War II. The plant closed in the early 1990s and has since undergone an extensive remediation program under the auspices of the Joliet Arsenal Development Authority (JADA), which has overseen cleanup of the entire 26,500-acre property and its conversion to civilian and commercial use. The opening of the BNSF intermodal facility was a key milestone in the area's transformation into an industrial, logistics and distribution center.
ProLogis expects to begin site preparation and infrastructure work at the new park in the near future, with completion of the first distribution centers anticipated for the first half of 2008. Phase I at the site will include a mix of inventory and build-to-suit facilities.
ProLogis is one of Chicago's largest providers of distribution space, with more than 22 million square feet owned, managed or under development. Customers in Chicago include a wide variety of leading global companies, including Anixter International; Clorox; Corporate Express; Gillette; Kellogg's USA; Konica Minolta; Kuehne + Nagel; and UPS.
ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 103 markets across North America, Europe and Asia. The company has $28.6 billion of assets owned, managed and under development, comprising 436.9 million square feet (40.6 million square meters) in 2,525 properties as of March 31, 2007. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs more than 1,300 people worldwide. For additional information about the company, go to http://www.prologis.com.
Released June 11, 2007