Pepsi Signs 135,000-SF Build-to-Suit

KEARNY, NJ-Pepsi Cola Bottling Group has signed a build-to-suit deal for a new 135,398-sf industrial building within Russo Development's Saw Mill Park, a new industrial park here. The larger project is the redevelopment of a former brownfield site that has been remediated by the Hackensack, NJ-based Russo.

In the deal, Russo was represented in-house by Michael Pembroke, the firm's senior vice president of leasing and marketing. Pepsi was represented by Alan Peterson, principal of Choyce-Peterson, Stamford, CT, and Jamie Weiss of Weiss Realty, Moonachie, NJ was also involved in the transaction. Terms were not released.

"In seeking a new site for our Northern New Jersey distribution facility, Russo brought the site to our attention and it was a match for our location requirements," says Anthony Pessolano, vice president and general manager of Pepsi. "The 11-acre site and the building footprint surpassed our operational requirements."

The signing marks the second major tenant brought into the new Saw Mill Park by Russo Development. As reported by GlobeSt.com, HD Smith, the Springfield, IL-based pharmaceuticals wholesaler, signed on as the park's initial tenant in a 211,000-sf deal.

"Since redeveloping this site, we've now been able to secure two blue-chip tenants with build-to-suit lease buildings," confirms Ed Russo, the company's president and CEO. "We're attracting tenants that will benefit the community while also adding jobs and economic growth to the region and the state."

Saw Mill Park is located within the Belleville Turnpike Redevelopment Area, as well as a state-designated urban enterprise zone, near Exit 15W of the New Jersey Turnpike. Russo's project is the first within the designated redevelopment area. For the Pepsi project, Russo is also doing the architecture, design, construction and management in-house based on the tenant's specifications.