ElmTree Funds Buys Pepsi Bottling Facility

With the help of HFF, Armada Hoffler Properties sold the newly built distribution center in Richmond, Va., totaling more than 220,000 square feet.
Pepsi Bottling Distribution Center

ElmTree Funds has acquired the Pepsi Bottling Distribution Center, a 220,825-square-foot facility in Richmond, Va., for $25.8 million. HFF negotiated the deal on behalf of the seller, Armada Hoffler Properties.

The distribution facility was completed in November 2018 and is triple-net leased to Bottling Group LLC, a subsidiary of Pepsi Beverages Company. Located at 1520 Willis Road, the property is near interstates 64 and 295 and is situated directly off Interstate 95, while Richmond International Airport is located 8 miles from the property.

“We are pleased to make this investment in the Richmond, Virginia, area, as we have identified it as a target market for our activities in the Mid-Atlantic states,” said ElmTree Funds CIO David Piasecki, in prepared remarks.  “Having a long-term lease with a high-quality tenant such as Pepsi Bottling in a market like Richmond fits squarely in our acquisition bullseye.”

The HFF team of Steve Conley, Bruce Strasburg, Chris Norvell, Coler Yoakam and Patrick Nally representing the seller.

Last September, ElmTree Funds founder Jim Koman named Richmond, Va., as a hot market for commercial real estate investment, pointing to its growing industrial market.

Image courtesy of HFF