Project Rally Revealed As Simmons/Serta
A giant in the mattress industry is looking to make its bed at a Doraville megaproject, if it doesn't end up in suburban Chicago instead.
Simmons/Serta is in talks with Holder Properties to have a 200k-plus SF build-to-suit office facility developed at Assembly, the massive mixed-use project on the site of the former GM plant overlooking I-285, sources say.
While the overall project, including the recent movie studio, is being spearheaded by Integral Group, sources say Holder has been tapped as the potential developer for the project, which would also include space for research and development. It's unclear if other sites in Atlanta are being considered, and it was unclear as of press time whether this would be a headquarters relocation for the bedding company, which is now technically in Illinois.
Called Project Rally in economic development and real estate circles, the deal is being run locally by JLL's Dom Wyant (above), who did not returns calls seeking comment.
A spokesperson for JLL declined to comment for the story as well, and Holder officials did not return calls either.
But the deal could be lost to Hoffman Estates, IL, the current home of Serta (here), which bought Atlanta-based Simmons Bedding Co (now HQ-ed at Two Alliance Center) in 2009 through its then private equity owner Ares Management. At the time, Simmons underwent bankruptcy. In 2012, the combined brands were sold to Advent International.
The companies today—still maintaining separate brands of mattresses—are in a seemingly healthier position. According to a recent Furniture Today article, Serta is the best-selling brand among mattress manufacturers, with sales topping $1.7B last year, more than $200M on its second-place rival Sealy.
Simmons is the third best-selling mattress maker, with sales in 2015 of nearly $1.4B, according to Furniture Today. Longtime Simmons CEO Gary Fazio (here) retired at the end of last year, ceding control of the division to Michael Traub.