ATLANTA-Phillips-Van Heusen is relocating and expanding its Georgia distribution operation to McDonough in Henry County. The apparel company will occupy the 852,000-square-foot Liberty Distribution Building in phases, beginning later this year.
The PVH expansion will add about 150 jobs to the local economy, bringing the company’s total to 300 in the region. The clothing manufacturer is investing an undisclosed amount to build out the facility with automation technologies that will drive growth potential.
“Initially, PVH was focused on a build-to-suit,” Matthew Astrachan, a executive vice president in Cushman & Wakefield’s midtown Manhattan office, tells GlobeSt.com. “However, we found existing locations that would satisfy their requirements, which included a stable landlord and a strategic location from a transportation and labor standpoint.”
PVH makes heavy use of seaports in its distribution operations. The move to the Liberty Distribution Building will allow the company to double the volume of products through the Port of Savannah. PVH manufactures brands like Calvin Klein, Izod, Kenneth Cole, and Tommy Hilfiger. PVH acquired Tommy Hilfiger in March for about $3 billion.
Kevin Urban, executive vice president of Logistics Services, was not immediately available for comment on the specific terms of the deal with landlord AEW Capital, a pension fund. AEW Capital was not immediately available for comment. However, Jim White, chairman of the Henry County Development Authority, says PVH signed a 20-year lease. The company will begin a test phase for the new operations later this year, with a complete build out targeted for 2013.
The PVH deal is yet another sign that Atlanta’s industrial market is rebounding. In the second quarter, Atlanta gained more than 2.5 million square feet of net occupancy, according to Grubb & Ellis. That’s a dramatic swing from just a year ago, when the industrial market posted 5.7 million square feet of negative absorption.
PVH isn’t the only big deal on the 2010 books. Colgate-Palmolive occupied 744,331 square feet at Westpoint at Riverside in the I-20 West submarket while Safelite Auto Glass took down 325,000 square feet at Park 85 in the Northeast submarket. Dayton Superior moved into its 192,000 square foot space at Park 85, making the building 100% occupied. Systemax Distribution moved into 459,134 square feet at 235 Hog Mountain Road, also in the Northeast submarket.
Charles Baker, director of Engineering for PVH, led site selection and lease negotiations, partnering with Cushman & Wakefield’s Astrachan, Mitchell Konsker, Steven Bauer, and Ray Stache in the Liberty Distribution Building deal. Larry Wilks and Michael Rotchford of the Cushman & Wakefield’s Investment Banking group also supported the team. Marty Reid with Duff and Phelps LLC assisted on behalf of PVH with project manager Andrew Neumann from Georgia Department of Economic Development to secure the deal.
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