In a $72 million deal, the footwear and accessories retailer DSW Inc. has acquired its corporate headquarters in Columbus. As a result of the transaction, DSW now owns the two-thirds portion of the campus that it had previously leased: its corporate headquarters building, a 700,000-square-foot distribution center and a trailer lot.
The retailer executed the deal by acquiring the property’s previous owner, 810 AC L.L.C., an Ohio-based private company. Third parties will continue to lease portions of the property from DSW.
“Today’s acquisition reflects our continued commitment to growing DSW in the future by opening stores, expanding our DSW.com business and by adding new accounts to our Affiliated Business Group (formerly the Leased Business Division),” remarked Mike MacDonald, DSW’s president & CEO. “Purchasing the property secures our investment and ensures our ability to expand into additional office space to support DSW’s continued growth,” he added.
DSW’s recent capital investments in the property include the installation of a $15 million automatic sortation system at the distribution center, which will support its size replenishment program. Under the terms of the deal, the previous owners will contribute $3 million toward replacing the roof of a building on the campus. Schottenstein Property Group will provide property management services.
DSW expects to benefit from reduced overhead and from revenue provided by leasing space to third-party tenants. At most recent report, the company operated 363 stores in 41 states, Washington, D.C., and Puerto Rico, and plans new store openings around the country.
Photo credit: DSW Inc.