Pepsi lease kicks off Pecos Logistics Park

By Jolene Wollett August 17, 2020

In addition to the PepsiCo build-to-suit, the first phase also will include three speculative buildings ranging from 121,800 sf to 139,200 sf, totaling 391,600 sf.

PepsiCo’s lease has popped the top on the Pecos Logistics Park project.

PepsiCo Beverages North America signed a 283,500-square-foot lease at the 66-acre infill logistics park under construction at the northwest corner of 56th Avenue and Pecos Street in Denver.

“Pecos Logistics Park is one of the last infill, large-scale development sites in the Denver market. The park is unrivaled in its highway accessibility, proximity to Denver’s population base and scale at over 1.15 million square feet. It’s a huge endorsement to the project to kick things off with a tenant of this quality committing to a lease of this magnitude,” said Matt Mitchell, vice president of industrial, Westfield Company Inc.

Tyler Carner, Jeremy Ballenger and Kyle McClure with CBRE’s Denver office represented the landlord, Denver-based Westfield Company Inc., which is developing the project, and are marketing the property for lease. PBNA was represented by Jim Bolt and Glenn Dyke of CBRE and Alan Peterson of Choyce Peterson.

“For more than 65 years, PBNA has proudly served the Denver metro market and we are so proud that we can enhance our operation in Colorado,” said Shawn Early Sr., market director for PepsiCo Beverages North America’s Mountain West Market, noting that the new location at Pecos Logistics Park is an expansion of its current footprint.

“This facility will allow us to better serve our employees, customers and community, while setting us up for long-term success in the future.”

In addition to the PepsiCo build-to-suit, the first phase also will include three speculative buildings ranging from 121,800 sf to 139,200 sf, totaling 391,600 sf. The front-park, rear-load buildings will feature dock-high and drive-in loading, 28- to 32-foot-clear ceiling heights, ESFR K-17 sprinklers, LED lighting and trailer parking. Phase One is slated to deliver in the third quarter of 2021 with an 1,880- sf spec suite in Building 1 and a 1,550-sf spec suite in Building 2.

The first phase of the project also includes a shared amenity space called “The Junction,” which will include conference and training rooms, a kitchen, flexible use/fitness space and showers, bike storage and outdoor patio space, accessible to all tenants.

“The Junction shared space allows tenants to use the shared facility for trainings and events, thereby minimizing office build-out in their space, which we see as a key differentiator,” noted Ballenger.

Westfield also anticipates utilizing The Junction space for future tenant appreciation events and on-site employment drives for the park’s tenant base.

Overall, Pecos Logistics Park will comprise 1.15 million sf of Class A industrial space at build out.

The initial lease leaves just over 860,000 sf in six planned buildings available at Pecos Logistics Park, with the ability to accommodate build-to-suits of all sizes. Phase Two will follow with three additional front-park, rear-load buildings totaling 471,000 sf.

Construction on the second phase will kick off as a speculative development based on the lease up of the initial phase, according to Carner. The park is suited to potential tenants such as e-commerce, logistics, showroom/retail or other distribution users.

Murray & Stafford is the contractor for the project, designed by Grey Wolf Architecture.

Located just south of the Pecos and Interstate 76 interchange, 2 miles west of Interstate 25, Pecos Logistics Park is served by a recently completed flyover bridge on Pecos that provides a direct connection between the property and I-76, with no stoplights, and I-70 is accessible just over 1 mile to the south.

The property also is within walking distance of the Pecos Junction commuter rail station, is five minutes from downtown Denver, has 2 million residents within 15 miles of the park and is located in a Denver Enterprise Zone within unincorporated Adams County.

The property includes in place Adams County industrial zoning and is serviced by Denver Water and Xcel Energy.

“This new development will bring a significant number of jobs to Adams County, which is critical for our community over the next few years,” said Emma Pinter, Adams County commissioner and board chair. “This is a great example of an Enterprise Zone redevelopment and how it can help revitalize local neighborhoods.”

“Being close to both employees and consumers in an infill location has never been more desirable to companies, and we believe Pecos Logistics Park’s location plus immediate access to three major interstates will prove valuable to Denver’s growing tenant base,” added Carner. “This initial commitment validates how important the infill location is to tenants and has brought additional interest to the site.”

Featured in the August 19-September 1, 2020, issue of CREJ