Somers, N.Y., Campus Serves as Long-Time Pepsi Bottling Group Headquarters
SOMERS, N.Y. – February 2, 2012 – (RealEstateRama) — Cushman & Wakefield, Inc’s Metropolitan Area Capital Markets Group has been retained to market One Pepsi Way in Somers for sale. The 206-acre campus and its 540,000-square-foot, Class A office building serve as the long-time corporate headquarters of Pepsi Bottling Group.
“This offering’s highlights—including superior quality, plentiful corporate amenities and stable net cash flow from a strong, committed credit tenant—make it a compelling opportunity to purchase a best-in-class asset, at pricing that will be significantly below replacement cost,” said Cushman & Wakefield’s Andrew Merin, vice chairman and head of the firm’s Metropolitan Area Capital Markets Group. Merin and team members David Bernhaut and Gary Gabriel, as well as Arthur Mirante, president of Global Client Development, are heading the assignment on behalf of seller Murray Hill Properties.
Constructed in 1987 by PepsiCo, Inc., One Pepsi Way was sold in 1998 to the Witkoff Group under a short term sale-leaseback (approximately 4.5 years), which Cushman & Wakefield arranged. The property again sold, in 2006, to Murray Hill Properties. Through the years, Pepsi Bottling Group has continued to renew its commitment, most recently in 2011 when it net leased the entire building through December 2015.
One Pepsi Way serves as the Bottling Group’s comprehensive corporate facility, housing executive, finance, senior team and human resources groups. The entire fourth floor, which has been renovated by the tenant, houses its mission-critical IT operations. A strategic business development center is also located at the property.
The nine-story building features a dramatic “C” shaped design, expansive campus and stunning views of the Muscoot Reservoir. Corporate amenities including a 290-seat cafeteria, meeting/conference space, a fully equipped health club with locker rooms, sports fields and recreation areas, and on-site parking for 1,500 cars.
“One Pepsi Way’s infrastructure has been maintained to the highest corporate standards,” Merin said. “In fact, given the level of on-going improvements, it is fully expected that Pepsi Bottling Group will exercise its five-year renewal option in 2015. Simply put, this offering is an exceptional opportunity, offering stable net cash flow from a robust corporate tenant combined with desirable underlying real estate.
“Throughout the New York suburbs over the past year, we have seen significant, growing interest in buying Class A assets that are important to a major corporation,” he added. “To that end, we expect that the Pepsi name will draw an impressive level of attention from net leased buyers, 1031 Exchange entities and overseas money.”
One Pepsi Way is located adjacent to and accessible from Routes 35 and 100; the two highways intersect less than one mile from the property. Interstate 684 and the Saw Mill Parkway, major highways providing access throughout the state as well as connections to key regional highways, are located within minutes of One Pepsi Way via Route 35.
“This asset is located in the picturesque town of Somers a bedroom community in northern Westchester County—one of the most esteemed corporate corridors in the northeast,” Merin said. “The county has a long history of attracting major users; seven additional Fortune 500 firms are based there.” This includes Pepsi Bottling Group’s parent company, PepsiCo Inc., as well as IBM, ITT Industries, Starwood Hotels and Resorts, and Jarden, among others.
Cushman & Wakefield’s Metropolitan Area Capital Markets Group specializes exclusively in investment sales of office, industrial, multifamily and retail properties throughout New Jersey, New York, Fairfield County, Conn., and Pennsylvania. The team has completed more than $15.2 billion worth of transactions since 2000.
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Media Contact:
Evelyn Weiss Francisco: evelyn (at) caryl (dot) com, (201) 796-7788, www.twitter.com/carylcomm
