Owner of Coach, Kate Spade plans distribution center in North Las Vegas

The owner of luxury brands Coach and Kate Spade plans to open a sprawling distribution center in North Las Vegas, the latest big warehouse project for the city.

A ceremonial groundbreaking was held Tuesday for Tapestry Inc.’s new fulfillment center off Interstate 15 near Las Vegas Motor Speedway. The project will be developed by Seefried Industrial Properties and span more than 788,000 square feet, according to a news release.

Tapestry’s facility, 5603 E. El Campo Grande Ave., is expected to open next year.

It is designed to distribute 22.2 million units annually and hold 4 million units in inventory, the release said, adding it will serve handbag and accessories brands Coach and Kate Spade.

Tapestry CEO Joanne Crevoiserat said the facility “will include cutting-edge technology solutions that enable us to better serve our West Coast customers.”

According to the release, it will feature the “latest advancements in materials handling equipment technology,” including a so-called Goods-to-Person system that increases speed and storage capacity.

The Governor’s Office of Economic Development in June approved $2.9 million in tax breaks over 10 years for the company.

New York-based Tapestry, which also owns footwear brand Stuart Weitzman, booked $834 million in profit for its fiscal year ended July 3 on more than $5.7 billion in net sales, according to a securities filing.

Fueled heavily by the rise of e-commerce, warehouse developers have been on a years-long construction spree in Southern Nevada, especially in North Las Vegas. Big chunks of land have been available there at relatively low prices over the years, and officials have expanded the city’s infrastructure, enabling more big-box facilities to take shape.

By all accounts, the valley’s industrial sector has held up well during the coronavirus pandemic. The outbreak dealt a crushing blow to the economy overall last year, at one point turning the Strip into a ghost town of shuttered casinos, but also sparked an accelerated shift to online shopping that has fueled demand for distribution space.

Developers have pushed ahead with multiple big warehouse projects in North Las Vegas alone this year.

Matter Real Estate Group, for instance, announced in September that it acquired more than 40 acres near the Speedway with plans to build a nearly 1 million-square-foot industrial complex.

CapRock Partners announced in July that it acquired nearly 21 acres in North Las Vegas with plans for a three-building industrial complex spanning more than 440,000 square feet.

VanTrust Real Estate also purchased about 350 acres in North Las Vegas in March and said it plans to develop a 4.5 million-square-foot industrial park.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.