FedEx Ground Distribution Facility

Transcription

1 FedEx Ground Distribution Facility OFFERING MEMORANDUM Emporia, Virginia NET LEASE GROUP Exclusively offered by: In association with: DOUGLAS LONGYEAR CA Lic # ANDREW BOGARDUS CA Lic # CHRISTOPHER SHELDON CA Lic # PAUL COLLINS Cushman & Wakefield VA Lic #

2 NET LEASE GROUP Disclaimer The information contained in this marketing brochure ( Materials ) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cushman & Wakefield ( Agent ). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties ( Property ) for potential purchase. The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property. The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/ or investigating and evaluating the Property. By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein. FedEx Ground i

3 NET LEASE GROUP Investment Offering & Highlights The Offering A 50,678 square feet industrial building located in Emporia, Virginia leased to FEDEX GROUND PACKAGE SYSTEM, INC., until September 30, Price: $8,894,300 Cap Rate: 7.00% Return increases to 7.20% in October 2018 due to a rent increase. Lease / Tenant FedEx Ground is one the nation s leading small package delivery companies. FedEx Ground is FedEx Corporation s most profitable division. FedEx Corporation s S&P bond rating is BBB. New 10 year net lease. Real Estate Mid-Atlantic Region. Convenient access to Interstate. Area Strengths Highway and rail crossroads. Diversified manufacturing base. FedEx Ground ii

4 FedEx Ground Distribution Facility Table of Contents Disclaimer Investment Offering & Highlights i ii Investment Overview 1 FedEx Ground 2 Site Plan 3 Floor Plan 4 Location / Area Maps / Aerials 5 Greensville County Economy 8 Transportation 8 Demographics 9 Photographs: We are using photographs of interiors of other FedEx Ground distribution facilities to provide an indication of the subject property s interior. These photographs are not intended to show an exact replica of the subject property. Exclusively offered by: In association with: DOUGLAS LONGYEAR doug.longyear@cushwake.com CA Lic # ANDREW BOGARDUS andy.bogardus@cushwake.com CA Lic # CHRISTOPHER SHELDON chris.sheldon@cushwake.com CA Lic # PAUL COLLINS Cushman & Wakefield VA Lic #

5 NET LEASE GROUP Investment Overview Location 180 Daniel A. Belmonte Drive, Emporia, Greensville County, Virginia Lot Size Approximately 7.2 acres 313,632± square feet Improvements This FEDEX GROUND distribution building was originally constructed in The building was expanded to 50,678 sq. ft. in The size of the building prior to its expansion was 16,752 sq. ft. The construction type is steel frame with a metal seam roof and metal exterior. The building has 2,193 sq. ft. of office space, 2 drive-in doors (14 x 16 ), 11 dock-high doors (8 x 9 ) and 18 back-in doors (can handle two trucks each) (18 x 16 ). The building is fully sprinklered. Annual Rent Investment Years Annual Rent Return Current - 9/30/2018 $622, % 10/1/2018-9/30/2025 $640, % 10/1/2025-9/30/2030 (Option 1) $704, % 10/1/2030-9/30/2035 (Option 2) $740, % Price: $8,894, % Cap Rate Lease Leased to FEDEX GROUND PACKAGE SYSTEM, INC., until September 30, 2025 at the annual net rent of $622,600. The annual rent increases to $640,815 on October FedEx Ground is a subsidiary of FEDEX CORPORATION (NYSE: FDX), which does not guarantee the lease. The tenant is responsible for all real estate taxes, property insurance, tenant s liability insurance, and maintenance of the yard, parking, drive and hard surfaced areas. The landlord is responsible for maintenance of the structural portions of the building including the foundation, roof, exterior or load bearing walls and floor slabs. There are two five-year renewal options; the first with a 10% annual rental increase and the second with a 5% annual rental increase. FedEx Ground 1

6 NET LEASE GROUP FedEx Ground Package System, Inc. FedEx Ground is one of North America s two largest small-package ground delivery services for E-Commerce. FedEx Ground is the most profitable of FedEx Corporation s four subsidiaries. FedEx Ground and its subsidiary FedEx SmartPost shipped an average of 7,526,000 packages per day in fiscal year FEDEX GROUND PACKAGE SYSTEM, INC., the Property s tenant, is one of North America s leading providers of business-to-business and business-toconsumer ground small-package delivery service FedEx Ground is FedEx Corporation s most profitable division. FedEx Ground has a network of more than 575 distribution hubs and local pickup-and-delivery terminals located throughout the United States and Canada. The FedEx 2016 annual report (May 31, 2016 yearend) indicates that the FedEx Ground segment had revenues of $ billion, which was 27.6% above the 2015 level, and operating income of $2.276 billion, which reflected a 4.8% year over year increase. FEDEX CORPORATION (NYSE: FDX), the tenant s parent, provides customers and businesses worldwide with the broadest portfolio of transportation, logistics and e-commerce services. FedEx corporation s four subsidiaries are listed above to the right. Subsidiary Business Revenues* Operating Profit* FedEx Express Overnight air delivery $26,451 $2,519 FedEx Ground Small package ground $16,574 $2,276 delivery FedEx Freight LTL, large items, intermodal, & custom critical $6,200 $426 FedEx Services * (in millions) Retail package drop off stores $1,593 Not reported For the fiscal year ended May 31, 2016, FedEx reported record revenues of $ billion and net income of $1.820 billion. On May 25, 2016, FedEx acquired TNT Express for approximately $4.9 billion. The acquisition combines the strengths of the companies the world s largest air express network and an unparalleled European road network, which will expand the existing FedEx portfolio and reshape the global transportation and logistics industry. TNT Express is one of the world s largest express delivery companies. On a daily basis, TNT Express delivers close to one million consignments ranging from documents and parcels to palletised freight. The company offers road and air delivery services in Europe, the Middle East and Africa, Asia-Pacific and the Americas. TNT Express made ±$7.6 billion in revenue in As of this offering s publication, FedEx Corporation had an investment grade S&P bond rating of BBB. FedEx Corporation does not guarantee the tenant s lease obligations. Website: FedEx Ground 2

7 Site Plan DANIEL A. BELMONT DRIVE ADMIN OFFICE 50,678± SQ. FT. TRANSITION TRANSITION SEDIMENT FOREBAY SWM BASIN SEDIMENT FOREBAY LEGEND FENCING PROPERTY LINE SAND FILTER NE FedEx Ground 3

8 Floor Plan 13 BACK-IN DOORS (18 x 16 ) 50,678± SQ. FT. 8 DOCK HIGH DOORS (8 x 9 ) 3 DOCK-HIGH DOORS (8 x 9 ) 5 BACK-IN DOORS (18 x 16 ) 2 DRIVE-IN DOORS (14 x 16 ) LEGEND = PACKAGE HANDLING SYSTEM = DELIVERY TRUCK = DELIVERY VAN FedEx Ground 4

9 79 Emporia, Virginia ANNAPOLIS WASHINGTON 4 Emporia is the southern gateway to Virginia, WEST 8 VIRGINIA miles north of the North Carolina state line. Emporia is located at the juncture of Interstate and Route 58. HARRISONBURG I- is the primary highway serving the East Coast. Route 58 provides access to Virginia Beach, 90 miles to the east FREDERICKSBURG MD DE Emporia is one hour s drive south of Richmond, and 90 minutes north of 81 Raleigh/Durham. The city is mid-way 64 between the Big Apple and Disney world. Many 64 east coast travelers between New York and Florida stop in Emporia. As a result, Emporia is ranked 3rd in the country in per capital retail sales. 60 CHARLOTTESVILLE RICHMOND Emporia is well located for distribution purposes. Over half of the country s BLACKSBURG population can be ROANOKE reached within one 29 day s drive of Emporia. LYNCHBURG VIRGINIA 2 PORT OF RICHMOND HAMPTON 15 VIRGINIA BEACH 58 DANVILLE 58 EMPORIA 58 PORT OF VIRGINIA WINSTON-SALEM N 73 GREENSBORO DURHAM RALIEGH NORTH CAROLINA 64 FedEx Ground 57

10 Location The Property is located at 180 Daniel A. Belmonte Drive, just off of Sussex Drive, northeast of the Otterdam Road exit on Interstate. PURDY ROAD BLUE STAR HIGHWAY PLEASANT SHADE DRIVE 58 PURDY ROAD SUSSEX DRIVE BRICKYARD ROAD DAVIS STREET DRY BREAD RPAD EMPORIA E ATLANTIC STREET 58 EMPORIA-GREENSVILLE REGIONAL AIRPORT COURTLAND DRIVE N RAILROAD

11 SOUTHSIDE VIRGINIA COMMUNITY COLLEGE SU SS E O N D TE DR IV E E RIV HERRELL CONTRACTING N DA IEL A. BE LM X FedEx Ground 7 N

12 NET LEASE GROUP Greensville County Located in southern Virginia, Greensville County is a 300-square mile area just north of the North Carolina border. Greensville County is directly connected to the entire eastern seaboard by interstate highway and rail service. This positions the County along the valued I- corridor within easy access of large metropolitan areas like Raleigh, Richmond, and Norfolk. Greensville County s central east coast location means that nearly 50 percent of the nation s economic activity lies within a 500-mile radius of the community. Economy Manufacturing continues to be one of Greensville County s largest economic sectors. Major employers in the area include: Employer Boars Head Provisions Company Greensville County Public Schools Beach Mold and Tool of Virginia Western Express Inc. SteelFab, Inc. Oran Safety Glass Inc. Georgia Pacific Wood Products Vulcan Materials Company Industry Food Manufacturing Educational Services Machinery Manufacturing Truck Transportation Fabricated Metal Product Manufacturing Nonmetallic Mineral Product Manufacturing Wood Product Manufacturing Mining Highways Emporia is bisected by the juncture of Interstate (I-) and US Highway (IS 58). Interstate (I-) is the main interstate on the US east coast, running north to south and parallel to the Atlantic Ocean, from the Canada-US border in Houlton, ME to Miami, FL. I- serves metropolitan areas such as Boston, New York, Philadelphia, Baltimore, and Washington, D.C. in the Northeast and Mid-Atlantic, and Richmond, Fayetteville, Savannah, Jacksonville, and Miami in the Southeast. I- provides Emporia with access to I-40 and I-20 to the south and I-64 and I-66 to the north. US Highway 58 (US 58) runs east to west from Virginia Beach, VA to Harrogate, TN. US 58 provides Emporia with access to I-81 and I-71 to the west and Virginia Beach to the east. Rail Service Two of the country s largest railroad systems serve the area: Norfolk Southern and CSX, which intersect in Emporia. Norfolk Southern routes run east to west and operate 20,000 route miles in 22 states and the District of Columbia with connections to every major Eastern port. CSX operates 21,000 miles of track, providing access to 70 ports and nationwide transloading and distribution services on a North-South route. Both of these railroad systems provide efficient options for manufacturers who ship raw materials and finished good across the nation. Airports Richmond International (RIC) is within an hour s drive of Greensville County, and carriers include AirTran Airways, American Airlines, Delta Air Lines, Southwest Airlines, United Airlines, US Airways, and JetBlue Airways. Raleigh-Durham International (RDU) is accessible within a 90-minute drive and carriers include Air Canada, AirTran Airways, American Airlines, Delta Airlines, Frontier Airlines, JetBlue Airways, Southwest Airlines, United Airlines, and US Airways. FedEx Ground 8

13 NET LEASE GROUP Demographics 2016 Summary 10 miles 20 miles 30 miles Population 18,149 44, ,268 Households 6,111 15,518 49,521 Families 4,018 10,299 33,287 Average Household Size Owner Occupied Housing Units 3,565 10,172 33,756 Renter Occupied Housing Units 2,545 5,345 15,765 Median Age Median Household Income $35,872 $35,903 $38,922 Average Household Income $47,536 $47,910 $52, Projected Summary Population 17,8 44, ,461 Households 6,051 15,364 49,275 Families 3,964 10,160 32,997 Average Household Size Owner Occupied Housing Units 3,540 10,053 33,571 Renter Occupied Housing Units 2,511 5,311 15,704 Median Age Median Household Income $37,007 $36,774 $40,263 Average Household Income $50,251 $50,471 $55,577 FedEx Ground 9

14 NET LEASE GROUP Exclusively offered by: In association with: DOUGLAS LONGYEAR CA Lic # ANDREW BOGARDUS CA Lic # CHRISTOPHER SHELDON CA Lic # PAUL COLLINS Cushman & Wakefield VA Lic #