PALMETTO, GA. — PVH Corp., a global apparel company, has signed a 1 million-square-foot lease for a new distribution facility in Palmetto, about 27 miles southwest of downtown Atlanta.
The newly delivered facility is located within Shugart Farms, which Red Rock Developments built in partnership with Wharton Industrial and Starwood Capital Group. Brad Pope of JLL negotiated the 20-year lease transaction. Built on a speculative basis, the developers are underway on $77.6 million in tenant improvements for PVH.
Formerly known as Phillips-Van Heusen, PVH manages a portfolio of clothing brands, including Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow, Speedo, Warner’s, Olga, Geoffrey Beene and True&Co.
By the end of the year, the new distribution center will create approximately 575 jobs once fully operational. PVH’s new facility is located along I-85, near to the CSX Fairburn Intermodal terminal and Hartsfield-Jackson Atlanta International Airport. The site is also about 250 miles from the Port of Savannah, a key factor in the selection of the facility, according to the developer.
“When we began development on this spec building, we knew we had the key ingredients to meet the needs of a modern bulk tenant,” says John Barker Jr., president and chief development officer for Red Rock.
Shugart Farms is currently in Phase II of development. Phase I included 2 million square feet of distribution space, currently occupied by Smucker’s and Duracell. Phase II includes the PVH deal as well as another speculative bulk building that Red Rock will break ground on later this year. Upon completion, Shugart Farms will feature industrial, office and retail space.
Columbia, S.C.-based Red Rock Developments focuses on single-tenant development for office and industrial use, as well as speculative industrial buildings and parks. Wharton Industrial is a division of New York-based Wharton Equity Partners. Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil and gas.
— Kristin Hiller