Silver Creek Development Lists Illinois Michelin Tire Facility

A suburban industrial listing hit the market with the potential to sell for well over $100 million.

Phoenix-based Silver Creek Development hired Newmark to market the 2 million-square-foot Michelin Tire Super Regional Distribution Center in Wilmington.

The distribution center, about 60 miles southwest of Chicago, is one of only two of the company’s “super regional” facilities. It was completed in 2015 and last sold for $130 million in 2021. Silver Creek secured about $80 million in financing from Pacific Life Insurance to fund the purchase.

The property is 100 percent occupied by Michelin.

Representatives of Silver Creek did not respond to requests for comment, and the asking price wasn’t disclosed. Marketing materials state the sellers could accept offers from more than one buyer, noting that buyers have the option to secure “a partial or outright interest” in the facility.

Dustin Volz, Scott Scharlach, Zach Riebe, Peter Harwood, Mark Lyman, Joe Morris and Travis McEldowney of Newmark are representing the seller.

The industrial sector has been one of the Chicago market’s performers since the pandemic. While demand for office space cratered, industrial properties surged.

The Chicago area’s second-priciest commercial transaction of last year was Australian firm HMC Capital’s purchase of a warehouse in Elk Grove Village from Prologis for $440 million. The company has committed another $272 million for the seller’s work to convert the property into a data center.

Chicago has historically been well-positioned for industrial properties such as distribution centers because of its railway access and centralized location. As the pandemic drove an increase in online shopping, and AI advancements boosted the need for data centers, industrial developers sought out the Chicago area.

That boom hit its peak in late 2023 when the amount of industrial space entering the market in the third quarter alone — 12.8 million square feet — was the highest since 1999, according to JLL.

The site is part of a broader 2,500-acre industrial park called Elion Logistics Park that is also home to Amazon, Post and General Mills.