Aurora
Aurora doesn't get talked about the way Chicago or Naperville does, but it's the second-largest city in Illinois, and I've done exchanges here for owners with property everywhere from the Fox River downtown to the outlet mall corridor near I-88. The market splits cleanly into pieces: a redeveloping riverfront around RiverEdge Park and the Paramount Theatre, the big-box retail spine along Route 59, and the industrial and flex space that keeps expanding toward the tollway.
Reading the Fox Valley Market Correctly
Downtown Aurora has been rebuilding itself around the Paramount Theatre and RiverEdge Park for the better part of a decade, and that's pulled some mixed-use and small multifamily investment back into a core that used to be mostly vacant storefronts. It's real, but it's still a smaller, thinner market than Route 59, where the retail nodes near the Chicago Premium Outlets and the big power centers carry national tenant credit and much deeper buyer pools.
Industrial is the other story here. Aurora sits close enough to I-88 and I-55 that small-bay flex and light manufacturing space has been steadily absorbed by tenants priced out of closer-in DuPage County locations. That's where I see the most exchange activity land when someone sells an older Aurora asset and wants income property with room to grow into.
The Route 66 Heritage Nobody Underwrites
Aurora sits on the historic Route 66 alignment, and the old highway still cuts through parts of the city that don't show up in a typical retail comp set. It's not something I'd build an investment thesis around, but it does mean some of the smaller commercial parcels along that stretch have a quirky, oversized lot depth or setback that a buyer expecting a standard suburban pad site should check before assuming a straightforward redevelopment.
Hollywood Casino Aurora, the riverboat anchored downtown near the Fox River, has been a steady draw for hospitality and nearby retail for years, even as the state's gaming landscape has expanded elsewhere. It's a smaller factor than the Chicago Premium Outlets or the Route 59 power centers, but it keeps a certain baseline of visitor traffic flowing through the downtown core that pure residential density wouldn't otherwise generate.
Where Exchange Proceeds Typically Go
Sellers here rarely stay in exactly the same asset type. The more common pattern looks like this.
- Route 59 retail with national tenants, chosen for predictable NNN income and financeable leases
- Small-bay industrial near the I-88 corridor, where rents have been climbing faster than downtown retail
- Multifamily near the Fox River core, for investors comfortable with older building stock and steady local demand
- Land held for future development along the outer growth edges of the city
- DST placements for owners exiting active management after years of running Aurora properties directly
Waubonsee Community College and Rush-Copley Medical Center anchor enough steady employment that medical-adjacent retail and office also show up on identification lists, though less often than the retail and industrial categories above.
Multi-County Closing Realities
Aurora sits across parts of Kane, DuPage, Will, and Kendall counties, which sounds like trivia until you're trying to close on the 180th day and the title company discovers the parcel splits across two recorder's offices. I've seen this add real friction to a closing timeline that looked fine on paper. Confirm which county your specific parcel records in before you build your exchange calendar, not after the identification period has already started. A five-minute call to the title company at the outset has saved more than one Aurora closing from a last-week scramble.
Building the Identification List
Because Aurora spans multiple submarkets that don't behave the same way, I encourage sellers to identify across at least two of them, retail and industrial being the most common pairing, rather than staying inside one category and hoping enough inventory turns up. The three-property rule gives room for that kind of diversification without triggering the 200% cap, and it's cheap insurance against one submarket going quiet during your window.
Common 1031 Exchange Questions
Is downtown Aurora a strong replacement market right now?
It's improving but still thinner than Route 59 or the I-88 industrial corridor. Downtown works well for buyers comfortable with older mixed-use buildings and a longer stabilization horizon. Investors wanting immediate, financeable income tend to look at retail and industrial instead.
Why does the multi-county boundary matter for my exchange?
Aurora crosses Kane, DuPage, Will, and Kendall counties, and title and recording practices differ by county. This can affect closing timelines inside the 180-day exchange period, so it's worth confirming early with your title company rather than discovering it near the deadline.
Can I identify property outside Aurora if I sell here?
Yes. The relinquished and replacement property don't need to be in the same city or even the same state, only within the United States and meeting like-kind requirements. Many Aurora sellers replace into Naperville, Joliet, or Schaumburg.
What size deals typically use the three-property rule here?
It's common for Aurora sellers with mid-size proceeds to identify three properties across different submarkets, for example one Route 59 retail asset and two industrial candidates, rather than betting everything on a single deal closing on schedule.
Do you provide legal or tax advice?
No. This page describes how exchanges are typically coordinated for Aurora property and is not a substitute for advice from your attorney, CPA, or qualified intermediary based on your actual transaction.
