FHR Capital Buys PVH Distribution Center

JLL Capital Markets arranged the sale of the 850,000-square-foot facility in McDonough, Ga.
PVH Distribution Center. Image courtesy of JLL
PVH Distribution Center. Image courtesy of JLL

JLL Capital Markets has orchestrated the disposition of PVH Distribution Center, an approximately 851,300-square-foot industrial asset in McDonough, Ga. Acting on behalf of the seller, identified in Henry County records as Henry County Development Authority, JLL sold the fully leased, Atlanta-area asset to FHR Capital LLC.

Located roughly 37 miles outside Atlanta at 127 Liberty Industrial Parkway, PVH opened its doors in 2006. The property is leased in its entirety to fashion and lifestyle company PVH Corp., which has occupied the warehouse and distribution facility under a triple-net agreement since 2010. The investment community took a strong interest in the asset.

“The opportunity received a very favorable response due to the lease term of over 10 years remaining combined with a very strong tenant credit profile,” Matt Wirth, managing director with JLL, told Commercial Property Executive. “There was a deep buyer pool of core and core-plus investors looking for stability and a per-square-foot basis that sets up for long-term success.” Wirth worked with JLL colleagues Dennis Mitchell, Britton Burdette and Crosby Taylor in the representation of the seller.

The allure of Atlanta

The metropolitan Atlanta industrial market did not commence 2020 with the same robust activity seen in the last half of 2019, but it still recorded positive net absorption totaling nearly 700,000 square feet in the first quarter, according to a JLL report. Additionally, even with the uncertainty due to the COVID-19 health crisis, the second quarter is on track to log positive absorption—albeit somewhat less than the previous quarter—as retailers seek additional warehouse and distribution space to accommodate the increase in e-commerce activity.

Solid demand drivers are at the foundation of the ongoing strength of the Atlanta-area industrial market, including McDonough. “Three drivers worth mentioning are population growth across the southeast and in Atlanta, in particular, connectivity to the Port of Savannah and access to South Florida,” Wirth said. “McDonough is one of the southeast’s premier clusters of bulk distribution with a very dense critical mass of household name tenants.”