Dallas Business Journal: Former PepsiCo corporate hub receives $20M upgrade, seeks new tenant

https://www.bizjournals.com/dallas/news/2024/10/31/plano-pepsi-co-renovation-rubenstein-headquarters.htmlA former office hub for PepsiCo Inc. in Plano is back on the market.

The 250,000-square-foot office building is on a 27-acre campus at 5600 Headquarters Dr. in the Collin County city. Rubenstein Partners, a Philadelphia-based fund manager for a series of private equity funds, purchased the property in April 2022.

The building, initially constructed in 1999, formerly housed the technology and logistics headquarters of PepsiCo (Nasdaq: PEP), which owns Frito-Lay. The company moved out of the facility in the first quarter of 2023 and is now located at 7701 Legacy Dr.

“The campus on Legacy Drive now serves as the national headquarters for the PepsiCo Foods North America business, as well as being home to other PepsiCo teams,” said a spokesperson for PepsiCo.

On Oct. 25, Rubenstein announced it had finished a $20 million renovation of the building’s interior and exterior, focused on enhancing the tenant experience. Updates include a new lobby and entrance facade, a lounge, a fitness center, and a 35,000-square-foot outdoor area with a kitchen and pickleball court.

The project was designed by Dallas-based GFF and constructed by Dallas-based K2 Construction. Happy State Bank provided financing for the project. Rubenstein also received incentives of more than $1.9 million from the City of Plano to help cover the roughly $20 million in building improvements.

As of today, multiple businesses have expressed interest in the newly modernized building, a spokesperson for Rubenstein said. The property sits at the intersection of the Dallas North Tollway and Sam Rayburn Tollway, offering walkability to nearby attractions like Legacy West and the Shops at Legacy. Dallas-based Lincoln Property Co. is serving as the leasing agent for the property.

Rubenstein, which focuses primarily on office investments, used a “modernization grant” from the City of Plano to help fund portions of the renovation project, including the fitness center and pickleball court. The firm declined to share additional details surrounding the grant.

Plano issues site and infrastructure grants for the renovation of corporate campuses to help attract new companies to the region, according to the city’s website.

“Corporations today are increasingly prioritizing office environments that deliver distinctive experiences for their employees,” Doug McDonald, Plano’s director of economic development, said in a statement.