Sugarloaf Logistics Hub Secures 200,000 SF Lease for Food Distribution Center: Lease with Souto Foods Will Bring $28M Investment and 70 Jobs to Greater Atlanta Area

Development includes plans to build 330 multifamily units at 2.2M SF Sugarloaf site

GWINNETT COUNTY, Ga., Sept. 30, 2024 /PRNewswire/ -- Foxfield LLC ("Foxfield") and AEW Capital Management ("AEW"), one of the world's largest global real estate managers, are pleased to announce several major milestones at their joint Sugarloaf Logistics Hub campus project (Sugarloaf) in Gwinnett County, Georgia with the successful execution of a major tenant lease and the sale of a 13+ acre multifamily development parcel. Today's announcement marks a significant step forward for Sugarloaf, a transformative, mixed-use real estate development project that will bring significant economic growth and development to Gwinnett County and the State of Georgia.

Foxfield and AEW acquired the property in 2022 with the intent to convert a six-building, 740,000 square feet, corporate office campus into a master-planned campus with over 2.2 million square feet of industrial, warehouse and logistics uses in seven new buildings ranging from 120,000 square feet to over 600,000 square feet with flexible floor plates. The site will also include between 700-800 residential units containing a mix of modernized, traditional styled flats (single-story apartments), carriage house styled units (townhouses), and five retail pad sites situated along Sugarloaf Parkway.

"At Foxfield, we excel at uncovering opportunities where others might overlook them, transforming those opportunities into success stories that align with our mission of delivering outstanding real estate developments and creating great places," said Mark Tang, Head of Development and Construction for Foxfield. "The lease agreement with Souto Foods and the sale of over 13 acres to Westplan Investors are prime examples of our team's dedication to enhancing economic opportunity and multifamily housing options in Gwinnett County."

"The Sugarloaf Logistics Hub fits with our strategy converting existing assets in growth markets with strong development partners like the team at Foxfield to meet the needs of today's modern users," said Steven Sechko, AEW Managing Director and Portfolio Manager, East Coast. "The area's expanding population, strong labor market, and high demand for modernized Industrial space make the property a sound investment."

Souto Foods expands local presence

The tenant lease, executed with major food distributor Souto Foods, a subsidiary of Alex Lee, is for an approximately 200,000 square foot building with a significant cold storage component. Souto Foods, a local Gwinnett food supplier specializing in high-quality products from Latin America and the Caribbean, plans to invest $28 million in the site and hire 70 new positions in the county. The tenant's decision to root a substantial portion of its Southeastern U.S. base of operations at the Sugarloaf Logistics Hub signifies a robust partnership with Foxfield. It underscores the strategic importance and attractiveness of the campus to its business operations.

"We are thrilled with the opportunity to partner with Foxfield and for Souto Foods to expand and remain in Gwinnett County," said Kimberly George, Senior Vice President of Alex Lee. "Gwinnett's multicultural community has long fueled the growth of Souto Foods and was a driver for remaining local with this expansion."

"Souto Food's long-term tenure in Gwinnett has empowered growth and opportunity for our Gwinnett County workforce over the years," said Partnership Gwinnett Vice President of Economic Development, Deven Cason. "It's been a joy and a privilege working with Souto Foods to continue their growth here in Gwinnett County and we wish them continued success."

The Sugarloaf Logistics Hub leasing brokerage team is led by Reed Davis, from JLL in Atlanta, and Stephen Bridges, from OnPace Partners in Atlanta, who assisted in securing the tenant. Bill Kee, from NAI Brannen Goddard, served as the tenant representative broker for Alex Lee.

Over 13 acres sold to Westplan Investors for multifamily development

Concurrent with the lease execution with Souto, the investment team successfully sold 13+ acres of a strategically located multifamily development parcel to Westplan Investors, a prominent Atlanta housing developer. This land sale will pave the way for the development of approximately 330 multifamily dwelling units with premier residential amenities that will add new vibrancy to the edge of the campus along Sugarloaf Parkway and Cruse Road. The residential project aligns with the team's vision of creating a vibrant and diverse mixed-used master-planned redevelopment that will serve the needs of community residents and future employees of the Sugarloaf Logistics Hub.

"We are thrilled to have acquired this prime development site within one of the fastest-growing geographies in the southeast," said Westplan Regional Development Partner Kenny Budd. "Surrounded by abundant employers, amenities, and demand drivers, this well-located opportunity aligns perfectly with our strategy of developing high-quality multifamily residences across sunbelt growth markets."

The brokerage team is led by Scott Cullen, from JLL in Atlanta, who represented Foxfield and AEW for the marketing and sale of the multifamily development parcel. Construction is expected to commence in the second quarter of 2025.

Comprised of nearly 300 acres, Sugarloaf is designed around natural features including streams, creeks, tributaries, a lake and recreational walking paths. The premier location, about two miles from I-85 on-ramps at the intersection of Sugarloaf Parkway and Highway 316, is perfectly positioned for last-mile logistics, light manufacturing, and food uses that draw advantage from Gwinnett County's population density, labor base, and location within Greater Atlanta.

"We appreciate the team's ongoing investment in Gwinnett County and congratulate them on reaching these recent milestones toward creating a high-quality mixed-use redevelopment at this highly visible and accessible location in our community," said Gwinnett County Commission Chairwoman Nicole Love Hendrickson.

For more information about Sugarloaf Logistics Hub, please visit: www.sugarloaflogisticshub.com.

About Foxfield:

Foxfield is a real estate investment and development company that focuses on industrial and residential markets. Headquartered in Boston, with offices in Atlanta, New York, and Philadelphia, Foxfield searches for unique investment opportunities throughout the East Coast. To date, Foxfield has transacted on $1.5 billion in acquisitions and currently has $1.0 billion in the development pipeline with more than 7 million SF in assets under management or development. Opening its doors in 2011, Foxfield has established a successful track record investing across asset classes and risk spectrums. 

About AEW
For over 40 years, AEW Capital Management, L.P. (AEW) has provided real estate investment management services to investors worldwide. As one of the world's largest real estate investment advisors, AEW and its affiliates manage $84.4 billion in private real estate equity, debt and listed securities across North America, Europe and Asia (as of June 30, 2024). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. AEW and its affiliates have offices in Boston, Los Angeles, Denver, London, Paris, Hong Kong, Seoul, Singapore, Sydney and Tokyo, as well as additional offices in eight European cities. For more information, please visit www.aew.com.

As of June 30, 2024. AEW includes (i) AEW Capital Management, L.P. and its subsidiaries and (ii) affiliated company AEW Europe SA and its subsidiaries. AEW Europe SA and AEW Capital Management, L.P. are commonly owned by Natixis Investment Managers and operate independently from each other. Total AEW AUM of $84.4 billion includes $38.9 billion in assets managed by AEW Europe SA and its affiliates, $4.9 billion in regulatory assets under management of AEW Capital Management, L.P., and $40.6 billion in assets for which AEW Capital Management, L.P. and its affiliates provide (i) investment management services to a fund or other vehicle that is not primarily investing in securities (e.g., real estate), (ii) non-discretionary investment advisory services (e.g., model portfolios) or (iii) fund management services that do not include providing investment advice.
investing in securities (e.g., real estate), (ii) non-discretionary investment advisory services (e.g., model portfolios) or (iii) fund management services that do not include providing investment advice.

Media contacts:

For Foxfield:

Susan Elsbree, Benchmark Strategies
[email protected]
617-212-6817

For AEW:

Maureen Richardson, River Communications
[email protected]
914-686-5599

SOURCE Foxfield