Real Estate Notes
February 10, 2003
Cluett Distribution Center has a new owner
Cluett Distribution Center has a new owner.
Solution Property Group LLC last month purchased the 561,600-square-foot building off Interstate 20. Solution paid $7.2 million, which is a deal given that the former landlords, New York entity Cluett, Peabody & Co., paid almost $10 million in 1998 for the property.
Mal Hill, a partner with Solution Property, said the firm is planning to spend about $1.5 million on renovations for its main tenant, apparel-maker Phillips-Van Heusen Corp. (NYSE: PVH) and its subsidiary, Arrow Shirt Co. Phillips-Van Heusen operates a distribution warehouse out of 460,000 square feet of Cluett, Hill said.
" The shirts come in from the port ... in bulk, are broken down and picked for the stores, and sent out to Rich's and Macy's and wherever else," Hill said.
John Phelps with Grubb & Ellis Co. represented Cluett, Peabody, and Jack Haden with NAI/Brannen Goddard Co. represented Solution Property.
Hill acknowledged Solution got a deal, but said "it won't really be a deal until we lease the rest of the building."