Michelin North America has bought the massive distribution facility it has called home for more than a decade, paying $151 million for the 2 million-square-foot complex in Wilmington, Illinois. The tire giant had been leasing the building for years before making the purchase, turning a longtime tenancy into outright ownership.
A Decade-Long Tenant Becomes the Owner
The deal, reported by Bisnow, closed with Michelin North America acquiring the property from a partnership between Silver Creek Development and GFH Partners. That partnership had purchased the facility from Transwestern Investment Group in 2021; Bisnow reports the pair paid $126 million for it at the time, though GFH Partners' own account puts its 2021 acquisition cost at approximately $135 million. The facility sits at 29900 S. Graaskamp Blvd. in Wilmington and spans 2 million square feet, according to Transwestern Investment Group.
The building was originally constructed in 2015 as a build-to-suit for Michelin and later expanded in 2016, according to REBusinessOnline. During Transwestern's ownership, Michelin expanded the facility by more than 300,000 square feet, the firm's release states. After acquiring the property in 2021, Silver Creek Development and GFH Partners secured an early extension of Michelin's lease, according to Bisnow. Michelin has used the property since 2015 to store inventory for dealers and automakers throughout the Midwest and West, per Bisnow's reporting.
One of Michelin's Two Main U.S. Bulk Hubs
Michelin North America fully occupies the facility, which GFH Partners describes as one of the company's two main bulk logistics centers in the United States, handling 35% of its imported inventory. The warehouse includes a 32-foot clear height, 126 dock-high doors, four drive-in doors and trailer parking, per the same REBusinessOnline account. Sources differ on the property's exact logistics-park designation: Transwestern places it within Elion Logistics Park 55, a 2,500-acre development roughly 60 miles south of downtown Chicago in Will County, while REBusinessOnline describes the site as situated within the RidgePort Logistics Center in Chicago's I-80 submarket.
GFH Partners CEO Nael Mustafa characterized the sale as validation of the asset's quality. “There is no stronger endorsement of an asset’s quality than its tenant choosing to own it,” Mustafa said. He added that GFH worked closely with Michelin to improve the facility and support its operations, producing what he called a successful investor exit.
Chicago Industrial Market Running Hot
The sale lands amid a surge in Chicago-area industrial activity. Chicago-area industrial sales totaled 48.7 million square feet year-to-date through the first three quarters of 2026, a 72.0% jump over the same period in 2025, according to Cushman & Wakefield. Investment sales specifically reached 40.8 million square feet, up 91.6% year over year and accounting for 83.9% of total volume, the firm's Q3 2026 market report notes.
Leasing activity has kept pace too, with 40.0 million square feet of new leases signed year-to-date, a 33.8% increase over the prior year. Despite that surge in activity, the overall industrial vacancy rate held steady at 4.7% for a fourth consecutive quarter, and average asking net rent climbed 3.9% year over year to $7.53 per square foot. GFH Partners pointed to continued e-commerce growth as one factor supporting ongoing demand in the broader U.S. logistics sector.
A Chicago-Area Industrial Deal
The Michelin transaction was reported on October 14, 2026. Logistics Property Co. has expanded its Chicagoland infill presence.
