The publicly traded company has taken 41,225 sf of class Aspace at 5360 Legacy Dr., one of three buildings in the retooledEDS campus, and across the street from its 300,000-sf headquartersbuilding at 5301 Legacy Dr. in Legacy Business Park. InVictorville, CA, Dr. Pepper Snapple is going ahead with its formerowner's $120-million plan to build a combo 550,000-sf distributioncenter and 300,000-sf manufacturing plant on 57 acres at theSouthern California Logistics Airport.

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Both deals were in the works as Dr. Pepper Snapple's executiveteam weighed candidates for the 13.5-million-sf corporate account,say CBRE senior vice president Seth Kelly and vice president DanielRudd, who pocketed the win. Rudd tells GlobeSt.com that roughlynine million sf of the portfolio is leased space, with Kelly notingit's predominately industrial stretching from East to West Coastand some stopping points in between along the Gulf Coast andwestern inland states. In all, there are 200 locations in the US,Canada, Mexico and the Caribbean.

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CBRE's Dallas-based, six-member team includes Nick Tansey, asenior vice president in Memphis where CBRE has its leaseadministration hub for the region. The corporate account, as wouldbe expected, was a sought-after assignment that in all likelihoodincluded Cadbury Schweppes' long-time holder, Cushman &Wakefield Inc. [IMGCAP(2)]"We know they looked at several othergroups," Rudd says, adding the decision-making spanned "three orfour" months. The multi-year deal involves transaction managementand lease administration.

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Rudd says most of the industrial and office mix has beeninherited during three years of company acquisitions. Kellyexplains the team's role will "be a rationalization" of what canstay, go or be consolidated.

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"The real estate footprint is totally going to be something withan optimized supply chain," Kelly stresses. "And transportationcosts are a key driver today and will be looked at as it relates towhere their facilities are located." The goal is to have strategicrecommendations for the corporate team within six months.

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The approach will be "expiration-driven," according to Kelly. Anestimated 40% of the portfolio's leases roll in the next threeyears.

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Kelly says the contract win is doubly sweet because Dr. PepperSnapple's decision-makers are in the team's backyard. "This is agreat opportunity for us because we have such a strong base inDallas and it's great that their headquarters is here," headds.

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Dr. Pepper Snapple's SoCal project could be a sign of thefuture. The combo facility will be built in an 8,500-acre logisticspark with an intermodal yard, opening the door for a single pointof distribution to California and parts of the Southwest. The"western hub" will employ 200 workers. Construction starts inOctober, with the ribbon-cutting slated for early 2010. The plantwill have the capacity to produce 40 million cases of productannually and serve nearly 20% of the US population.

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Dr. Pepper Snapple has a 20,000-member workforce. There are 24bottling and manufacturing facilities and more than 200distribution centers in the portfolio.

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Grant Dinsmore, vice president of sales operations for Dr.Pepper Snapple, says in a press release that asset management anddeveloping strategic direction are chief considerations. With CBREat the helm, "they will be an important partner as we transform themanagement of our real estate portfolio to improve operationalefficiencies," he says.

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