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Pepsi Buys 150,000-SF Sky Harbor Property

PHOENIX-The Pepsi Bottling Group Inc. spends $4.1 million for the former headquarters of Sea Ray Boats Inc., ending nearly nine months of talks with a seller who's been waiting nearly two years for the right buyer to come along.

By Lee Simmons | Updated on July 01, 2004

PHOENIX-A two-building industrial facility, totaling 150,000 sf, in the Sky Harbor submarket fetches $4.1 million from the Pepsi Bottling Group Inc., which plans to utilize the property to manufacture bottles and vending machines. The deal culminates two years of marketing for the former Sea Ray Boats Inc. headquarters.

“We had some pretty strong activity, just not at a level that was acceptable,” Kirk Jenkins, an executive vice president and principal with GVA Daum Commercial Real Estate Services in Phoenix, tells GlobeSt.com. “We started entertaining offers from Pepsi in October of last year. They have a 25-acre manufacturing plant east of this property so it was a natural growth plan.”

The Somers, NY-based Pepsi Bottling Group entered a 45-day escrow period in April with Sea Ray parent Brunswick Corp. of Lake Forest, IL, which was represented by Jenkins and Daum’s Skip Corley Jr. Prior to Pepsi’s involvement, the majority of offers on the property came from investors, which would have lowered the price. The seller decided to sit tight for the right owner-operator to come along. Pepsi, which closed below the ask, got a facility directly west of its existing operation at 4242 E. Raymond St., Jenkins adds.

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