Pepsi Bottling Ventures

1.

Situation

Pepsi Bottling Ventures acquired a local Charlotte-area bottler with multiple distribution facilities. While functional, the collection of facilities was not ideal for operations, so the company needed a new real estate strategy to either fully utilize or divest these assets. We were engaged to help evaluate the feasibility of these options and act as advisors to the executive team.

2.

Solution

Through a comprehensive strategic plan, we helped Pepsi Bottling sell their South Boulevard facility in Charlotte to a multi-family, mixed-use developer, netting a $20MM gain. Simultaneously, we helped the bottler identify a site and developer for a lease-to-own structure, a new consolidated facility in Harrisburg, NC. Pepsi Bottling Ventures was able to move the South Boulevard sale proceeds into a new facility under a 1031 exchange. We also worked to lease out a second facility in Midland, NC, mitigating that risk for the next five years.

3.

Benefit

Through this series of transactions, Pepsi Bottling Ventures was able to build a new consolidated distribution hub in an ideal location for its Charlotte operations. Additionally, the unused profits from the South Boulevard sale were used to invest in equipment and infrastructure, and to 1031 purchase adjacent land to their existing Garner, NC distribution facility.

Tom James Company

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