Cadbury space back on the market
With its Westchester County work force slashed by two-thirds since last fall, Cadbury Schweppes plc, is looking to sublease most of its office space in Rye Brook. And Empire State Development Corp. (ESDC) is looking to recover more than half of the $1 million grant awarded the company three years ago when it relocated there.
The London-based confections and beverages giant last October announced it would spin off its Americas Beverages business, including Snapple Beverage Group Inc. and Mott”™s L.L.C. in Rye Brook, after it was unable to find a buyer for its American operations. The demerger is expected to be completed by the second quarter this year.
With the pending split, the British company announced job reductions that affected about 500 employees companywide. The restructuring was expected to save the parent company about $70 million.
About 150 positions at the company”™s 900 King St. office in Rye Brook were affected, with most of those either relocated to Americas Beverages headquarters in Plano, Texas, or eliminated, Cadbury Schweppes spokesman Greg Artkop said last week. He said 75 employees continue to work in Rye Brook supporting the company”™s Northeast customers and operations. Americas Beverages occupies about 20,000 square feet in the 203,900-square-foot Class A office building.
Cushman & Wakefield was selected by Cadbury Schweppes to handle the leasing of 135,000 square feet of office space at the King Street location for single-tenant or multi-tenant occupancy. A Cushman & Wakefield spokeswoman said 36,787 square feet is available on the first floor and 98,213 square feet on the second floor. The space is available for sublease through January 2015.
More than 400 employees worked at Snapple and Mott”™s offices in Rye Brook when Cadbury Schweppes consolidated its Stamford, Conn., and White Plains operations there in 2004 after spending approximately $11.5 million to renovate and equip the vacant building.
ESDC in 2005 awarded Cadbury Schweppes a $1 million grant for the relocation. The company also received $659,000 in sales tax exemptions through the Westchester County Industrial Development Agency. The state required the company to meet certain employment goals or face repayment of all or part of the grant.
The company fell short of its 414-employee goal in 2006, when its average employment was 322. As a result ESDC recaptured $177,600 from the company.
The company recently reported an average 2007 employment level of 164. As a result of the company’s failure to meet its 2007 goal, ESDC can seek repayment of another $493,440, said ESDC spokesman A.J. Carter. Carter said if the company cannot claim “any extenuating circumstances,” the state agency will start the recapture procedure.
“ESDC is committed to helping companies create and retain jobs in New York state,” the spokesman said. “But we”™re also committed to holding companies to their job and investment commitments, as we have here.”
Other major tenants at 900 King St. include the administrative offices of Greenwich Hospital and Kenmar, the investment management firm. The recently renovated two-story property is owned by Brickman, a real estate private equity firm based in New York City.