It appears that there is something in gemfire.properties that causes the locator to hang. I tried starting a locator with your gemfire.properties (I modified the locators prop, and whatever else was env. specific) and reproduced the same behavior you got. Then I trimmed it down to a few properties that are commonly used with locators (locators, log related properties), and the locator started without problems. So, I'd recommend removing all the properties you don't need in gemfire.properties.
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