single tenant fedex property for sale
DESCRIPTION
single tenant net leased FedEx property for saleTRANSCRIPT
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NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING
FedExFedExFedExFedEx 8273 Garfield Road8273 Garfield Road8273 Garfield Road8273 Garfield Road Freeland, MI 48623Freeland, MI 48623Freeland, MI 48623Freeland, MI 48623
CONFIDENTIAL OFFERING MEMORANDUM
NET LEASED INVESTMENT OFFERING
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Aerial
Site Plan
Maps
Demographic Comparison Report
Tenant Profile
Location Overview
Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER
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The Boulder Group is pleased to exclusively market for sale a single tenant net leased FedEx property located in Freeland, Michigan. FedEx has been at this location since its construction in 1991 and benefits from its strategic location adjacent to the MBS International Airport. The MBS International Airport is serviced by United Airlines and Northwest Airlines and provides air travel services for over 260,000 passengers annually, in addition to the 124,000 pounds of air cargo transported each year. The MBS International Airport is currently undergoing a $48 million expansion for a brand new terminal. A prior economic impact study found the MBS International Airport to have a $100 million economic benefit annually to the surrounding area. The same study found that the direct impact of the airport through jobs and property-related revenues was estimated at more than $50 million annually.
The 27,000 square foot FedEx was built in 1991 and is benefitted by its location near the MBS International Airport. FedEx is located along Garfield Road, the main thoroughfare between the MBS Airport Terminal and US-10. The property has 4,000 square feet of office space and 23,000 square feet of warehouse/distribution space with 16 foot clear height ceilings. The property is located less than ten miles from the headquarters of Dow Chemical Corporation. Dow Chemical and Dow Corning each have their own private hanger at the MBS International Airport that were renovated prior to the construction of the new MBS terminal.
FedEx has been at this property since 1991 and its current lease extension expires in June 2016. There are two 5-year renewal options remaining. The rent escalates by 20% in each remaining option period. FedEx is a publicly traded company on the New York Stock Exchange (FDX), with a market capitalization of $27 Billion. FedEx is an investment grade company with a Standard & Poor’s rating of BBB.
• Standard & Poor’s investment grade rating of BBB
• 20% rental escalation in each of the two remaining options
• Strategic location adjacent to MBS International Airport which transports over 120,000 pounds of air cargo annually
• Longstanding tenant with over twenty years of operating history at the site
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY
EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY
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Price:
$1,908,620
Cap Rate: 8.70%
Net Operating Income: NOI Escalation Date
$166,050
$199,260 7/1/2016 (Option 1)
$239,220 7/1/2021 (Option 2)
Renewal Options: Two 5-year options
Lease Commencement Date: February 1, 1991
Lease Expiration Date: June 30, 2016
Tenant: FedEx
Year Built 1991
Lease Type: NN (Roof, Structure & HVAC Replacement)
Rentable Square Feet: 27,000 SF
Land Size: 3.56 acres
PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW
PROPERTY OVERVIEW
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AERIAL
AERIALAERIALAERIALAERIAL
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SITE PLANSITE PLANSITE PLANSITE PLAN
SITE PLAN
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MAPS
MAPSMAPSMAPSMAPS
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PopulationPopulationPopulationPopulation 5555----mi.mi.mi.mi. 7777----mi.mi.mi.mi. 10101010----mimimimi
Total Population 16,002 42,559 148,596 Total Households 5,554 15,767 59,813
IncomeIncomeIncomeIncome
Median Household Income $62,806 $58,012 $52,995 Average Household Income $72,432 $70,119 $62,672
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC DEMOGRAPHIC DEMOGRAPHIC DEMOGRAPHIC COMPARISON REPORTCOMPARISON REPORTCOMPARISON REPORTCOMPARISON REPORT
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Websites: www.fedex.com
Stock Symbol: FDX : NYSE
Standard & Poor’s Rating: BBB
Market Capitalization: $27 Billion
Employees: 290,000
2011 Revenue: $39 Billion
FedEx Corporation (NYSE: FDX) is a logistics services company, based in the United States with headquarters in Memphis, Tennessee. FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. FedEx offers integrated business applications through operating companies under the respected FedEx brand. FedEx provides delivery for more than 9 million shipments each business day. FedEx has over 688 aircrafts that serve more than 375 airports worldwide in to the ground fleet of over 90,000 motorized vehicles for express, ground, freight and expedited delivery service.
FedEx Express is a subsidiary of FedEx Corporation that is responsible for overnight courier services, providing next day air service within the United States and time-definite international service. FedEx Express operates one of the largest civil aircraft fleet in the world and the largest fleet of wide bodied civil aircraft; it also carries more freight than any other airline. FedEx Express provides delivery services to over 220 countries and territories. FedEx Express is the world’s largest express transportation company and provides delivery for more than 3.6 million shipments each business day.
TENANT PROFILE
TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE
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LOCATION OVERVIEW
LOCATION LOCATION LOCATION LOCATION OVERVIEWOVERVIEWOVERVIEWOVERVIEW
FreelandFreelandFreelandFreeland is an unincorporated community in Saginaw County, Michigan. Freeland is the home to the MBS International Airport, which serves three major nearby cities: Saginaw, Bay City and Midland. Saginaw County is part of the Flint/Tri-Cities area and at the time of the 2010 U.S. Census had a population over 200,000. The Tri-Cities area has a population of over 400,000 and includes the counties of Saginaw, Bay City and Midland.
Major employers in the Tri-Cities include The Michigan Sugar Company (a 1,250 famer cooperative), three General Motors Powertrain plants, The Dow Chemical Company, Delphi Corporation and S.C. Johnson and Son. The world headquarters of The Dow Chemical Company is located in Midland. Dow Chemical is the second largest producer of chemical in the world. The area is also home to the world headquarters of Nexteer Automotive, an automotive parts supplier.
http://www.saginawcounty.com/
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666 Dundee Road Suite 1801
Northbrook, IL 60062
Randy Blankstein President 847.562.0003 [email protected]
Jimmy Goodman Partner 847.562.8500 [email protected]
CONTACT INFORMATION
CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION