News Article | 2/22/2006

Hillwood Buys Distribution Center from Helen of Troy

Dallas-based Hillwood Investment Properties has acquired a 619,000-square-foot distribution center near Memphis from Bermuda-based Helen of Troy Ltd. The transaction was part of a build-to-suit deal inked last year between Hillwood and Helen of Troy, maker of a wide variety of personal care products, including Revlon, Vidal Sassoon and Dr. Scholl’s.Helen of Troy will continue using the facility, the Airways Distribution Center in Southaven, Miss., until this spring, when it will move into a 1.2 million-square-foot facility built specifically for it by Hillwood in the DeSoto Trade Center, which is also in Southaven. Hillwood is currently building two separate spec industrial buildings at the DeSoto Trade Center, which covers 680 acres and is a foreign trade zone. Terms of the Airways sale weren’t disclosed, but according to an SEC filing by Helen of Troy, it had a put option to require the developer to purchase the existing facility for $16 million. Helen of Troy paid about $33.6 million for the new facility, according to the filing. “The south Memphis industrial market is one of the strongest in the country, so we don’t anticipate trouble in leasing the space in the Airways Distribution Center,” a Hillwood spokesman told CPN this afternoon. He added that Hillwood plans to market the building to users ranging from 200,000 square feet to the entire building. Along with the buildings available at DeSoto Trade Center, Hillwood now has about 1.4 million square feet of distribution space available in the south Memphis submarket.