The state is seeking bids for Daman Silos

Government JB Pritzker wants to sell an abandoned industrial site on Chicago’s Lower West Side, best known for a background For the 2014 Hollywood blockbuster “Transformers: Age of Extinction”. The state is located along the South Branch of the Chicago River at 2900 S. Damon will accept bids this fall for the Silos on Damon Avenue, a 23.4-acre property familiar to drivers for its old grain silos on the Stevenson Expressway.

Selling the Daemon silos would relieve the situation of financial burden, officials said, and a buyer could convert it into a data center, telecommunications facility, cannabis business or an industrial complex, giving the surrounding neighborhood an economic lift.

“The sale of this surplus asset will create significant economic opportunity in Chicago’s Lower West Side and McKinley Park communities, while also saving the state the cost of annual operating expenses,” Anthony Passante, acting director of the state’s Central Management Services, said in a prepared statement. Statement.

This may not be an easy asset to unload. According to Mike Sener, an industrial expert and executive vice president at Colliers International, the state tried to auction the Demon Silos in 2014, but officials turned down the potential deal.

“It was pulled because there was limited participation in the auction,” he said. “There were concerns about the cost of asbestos removal, the cost of demolition, the cost of building a sea wall, and other environmental costs.”

But Daemon silos may now attract more bidders than in 2014, Sener said. Over the past eight years, builders filled development sites in the Chicago area with new logistics and distribution warehouses as consumers increasingly bought products online, and few vacancies remained.

“Demand should be better because there is such a limited supply,” he said.

According to Colliers International, high inflation, rising interest rates and other economic uncertainty in the first half of 2022 did not pacify Chicagoland’s logistics boom. Product distributors captured 23 million square feet, ahead of last year’s record-breaking pace, and reduced the vacancy rate to 4.58%, a record low.

Selling the Demon Silos is part of Pritzker’s initiative to rid the state’s real estate portfolio of properties that are obsolete or too expensive to maintain. The administration sealed its most prominent deal in that effort earlier in the summer when Google agree to buy The James R. Thompson Center, which state officials estimate will save taxpayers nearly $1 billion over 30 years.

The Illinois Department of Transportation took over the Damon Silos from a railroad nearly a century ago, eventually using it to mix road construction materials. But in 2005, department officials said they had no further use for the property and transferred it to the state’s central management services for disposal. By 2013, “Transformers” director Michael Bay was using it to set off fiery explosions.

The state is selling the property in “as is” condition, and initial bids, which should be a minimum of $3.25 million, must be due by October 19. According to a marketing flyer from Commercial Real, officials will select the winning bid by November. Estate firm JLL.

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