The Allen Group Leases 817,000 Square Feet to VF Outdoor, Inc. for New Distribution and Logistics Center
SAN DIEGO, California (July 13, 2005) The Allen Group, a major developer of industrial and office properties in the Western United States, announced today that VF Outdoor, Inc., a subsidiary of VF Corporation (NYSE: VFC), has signed a long-term build-to-suit lease agreement for a new 817,000-square-foot distribution and logistics facility.
The project will be built at the MidState 99 Distribution Center, a master-planned industrial development in Visalia, Calif. The new facility will serve as the Western distribution hub for VF Corp.’s Outdoor Apparel unit. More than 350 permanent jobs will be created by the facility once it’s fully operational.
VF Corporation, with sales in excess of $6 billion, is one of the world’s largest apparel companies, with leading brands in jeanswear, intimate apparel, outdoor apparel and equipment, and specialty apparel. Its brands include Lee®, Wrangler®, Vanity Fair®, Bestform®, Lily of France®, Nautica®, John Varvatos®, JanSport®, Eastpak®, The North Face® and Vans®.
The Allen Group will develop the new 817,000-square-foot facility, which will feature state of the art racking and distribution equipment, 40-foot clear heights, and an additional 200,000 square feet of mezzanine space for VF Corp. The Allen Group will own the completed building, which will cost an estimated $42 million to develop, and has entered into a long-term triple-net lease on the property with VF Outdoor, Inc. In addition, VF Outdoor, Inc. signed a short-term lease for 118,000 square feet in an existing building that also is located at the MidState 99 Distribution Center.
VF Outdoor, Inc.’s selection of MidState 99 reflects the site’s competitive advantages, including its strategic location, abundant labor supply and existing rail infrastructure,” said Richard S. Allen, chief executive officer of The Allen Group. “The new VF facility will allow goods to be stored, shipped and delivered faster and with greater efficiency.
Scott Burke, Distributions Director of VF Corp., said, “We’re committed to building the most flexible and efficient supply chain in the apparel industry. The Allen Group recognizes our need for a sophisticated, high-tech facility to meet our distribution needs in California and nearby Western states. MidState 99 is a highly attractive site in an optimal location, with 35 million people living within a 300-mile radius.”
He added: With this facility, we’re making the company’s largest single capital investment. Local leaders appreciate our goals, business requirements, and the economic benefits that will accrue to the community. We’re excited to call MidState 99, and Visalia, a new home.
Construction of the new facility will begin within the next 10 days, with completion expected in June 2006. The development team includes design-build firm The Haskell Company (Jacksonville, Fla.) and Sedlak (Richfield, Ohio), a supply-chain specialist that is responsible for the design and implementation of all operations and materials-handling systems within the facility.
More About the MidState 99 Distribution Center
Strategically located in the heart of California, the MidState 99 Distribution Center (www.midstate99.com) is midway between population centers Los Angeles and San Francisco. The property is adjacent to Highway 99, a major north-south artery and trucking corridor, and easily accessible by air and rail. From this location, 97% of all California zip codes can be served overnight by UPS ground service.
More than 400 acres of master-planned and entitled property accommodates existing and new industrial facilities at MidState 99. Federal, state and local incentives, including Foreign Trade Zone and California Enterprise Zone programs, offer fast-track permitting, duty and fee deferrals, equipment tax credits, hiring tax credits, net operating loss carryovers and comprehensive start-up hiring assistance and training benefits.
Typical buildings have a 30-foot clear height, ESFR fire systems, a 150-foot truck court, dock-high and at-grade doors, and offices. MidState 99 tenants include ALCOA Reynolds Food Packaging, Condor Freight Lines, International Paper Company and Jo-Ann Stores.
Distribution companies also find Visalia to be an ideal location; a number of them have sited statewide or regional distribution hubs there: UPS (regional), Condor Freight Lines (statewide) and Golden State Overnight (statewide). With the adjacency of the Visalia Airport, FedEx and DHL have established pick-up and delivery facilities on the tarmac.
About The Allen Group
The Allen Group (www.allengroup.com) is a San Diego based commercial development firm specializing in rail served industrial parks, and office and industrial build-to-suit parks and facilities throughout the Western United States. The Company has developed approximately five million square feet of commercial property in California and across the West, including two master-planned industrial distribution and logistics centers (MidState 99 and the International Trade and Transportation Center near Bakersfield, Calif.). The Allen Group presently has major industrial and office projects under development in San Diego, Bakersfield, Shafter, Sacramento, and Visalia, Calif., as well as Dallas, Tex. The Company is trusted by Fortune 500 companies that use real estate as an integral part of their businesses. Clients include Cox Communications Inc., FedEx Corporation, International Paper Company, Intuit, Inc., Kraft Foods, Inc. and Wal-Mart Stores, Inc.
SAN DIEGO (January 17, 2006) — The Allen Group, a major developer of office and industrial properties, has named Jon Cross as Director of Marketing. In this role, Cross manages the Company’s overall marketing and strategic operations, managing both internal and external communications.