SOMERS, NY-Pepsi Beverages Co., the bottling division of PepsiCo Inc., has taken half again as much space at Murray Hill Properties’ 1 Pepsi Way, expanding to 540,000 square feet in a simultaneous renewal and expansion that’s reportedly the largest office deal in the region’s history. PBC now leases the entire property for its headquarters, and says it will remain there through at least 2015, with an option to extend the lease by five years.

The nine-story building houses approximately 1,200 PBC employees and contractors. PBC currently occupies seven floors and, as the property’s sole tenant, can expand to fill the remaining 180,000 square feet over time.

Paul Jacobs, who with CB Richard Ellis colleague Robert Caruso represented PBC, says in a release that the tenant had considered relocating out of New York State. “After three years of negotiations, it was ultimately decided to remain and expand at 1 Pepsi Way as the best option to meet PBC’s current and future real estate requirements in the region," Jacobs says. PepsiCo itself is headquartered in nearby Purchase, NY.

Along with Jacobs and Caruso, PepsiCo’s attorney, Garry Berman of Robinson & Cole LLP,  represented PBC in negotiations. Glenn Walsh and Arthur Mirante of Cushman & Wakefield, and attorney Allen Wieder of Paul Weiss, represented Murray Hill.