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PepsiCo Plans To Leave Somers, Says Town

The 540,000-square-foot building at 1 Pepsi Way in Somers first opened in 1985.
The 540,000-square-foot building at 1 Pepsi Way in Somers first opened in 1985. Photo Credit: File photo

SOMERS, N.Y. – PepsiCo has plans to leave its Somers facility, according to an announcement from the town.

The departure from Somers will involve moving employees to locations in Purchase and White Plains, the town's announcement state, adding that the move's completion is expected in the first quarter of 2016.

The facility has 540,000 square feet, is located at 1 Pepsi Way and has been connected to Pepsi since 1985, according to a previous press release from the company.

The Pepsi links to the Somers campus have been in different forms over the years. In 1999, PepsiCo spun off a bottling operation, which became Pepsi Bottling Group (PBG), according to archived submissions to the U.S. Securities and Exchange Commission. PBG used the Somers location as its headquarters, PepsiCo has previously stated. In 2010, PepsiCo bought back PBG . The campus then became the headquarters of PBG's successor , a subsidiary company called Pepsi Beverages Company (PBC).

In 2011, PepsiCo announced that it would remain in Somers for at least another five years. The company struck a deal with the Empire State Development , a state agency, in connection with its decision to stay. The deal called for the development authority to provide a $4 million for investing in the Somers location.

The town announcement includes a note stating that PepsiCo used to own the site but now leases it.

The town also notes the reason for the impending departure.

"The decision to relocate allows them to achieve operating cost savings and further enhance internal collaboration."

This is not the first time that PepsiCo has considered a departure from Somers. According to Empire State Development's 2011 announcement for the deal to stay in town, PepsiCo had considered a move to Danbury, Conn.

It was not immediately clear what would happen to the jobs of approximately 900 people employed by PepsiCo in Somers, according to lohud.com.

The town does not expect there to be a financial impact for now.

"The Town will be working with the property owner to secure new tenant(s) to occupy this beautiful facility and sees no immediate financial impacts due to the announced relocation."

Somers' assessment roll lists a limited-liability company called PSI Holdings as the owner. The entity is linked to commercial real estate firm Murray Hill Properties due to shared contact information included.

PepsiCo named Murray Hill Properties as the site's owner in its 2011 press release. In 2012, Murray Hill Properties had sought to sell the property, according to a press release from Cushman & Wakefield , which served as a broker.

It is not clear whether Murray Hill Properties directly owns PSI Holdings.

PepsiCo gave up its ownership in 1998 when it sold the Somers location to the Witkoff Group, according to Cushman & Wakefield's prior announcement, adding that Murray Hill Properties acquired it in 2006.

The campus, which is around 200 acres, has a full market value of about $69.5 million and an assessed value of $9.1 million, according to town records.

Stephanie Mojica contributed to this report.

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