FedEx Distribution Facility | Annual Rent Increases
2580 Manitou Rd Rochester, NY 14624
Price: $18,792,000
Status: Sold
Cap Rate: Contact Broker
Year Built: 1997
NOI: $934,986
Lot Size: 10.42 acres
Price Per Foot: $167
SF: 111,741 Sq Ft
Remaining Term: 6+ Years
Lease Type: Double-Net (NN)
Property Intro
Lee & Associates, in conjunction with Bang Realty-New York Inc., is pleased to exclusively offer for sale the fee simple interest (land & building) in an industrial investment property located in Gates (Rochester), NY (the “Property”). Built in 1997, the Property consists of a 111,741-square-foot industrial building that sits on an approximately 10.42-acre parcel. There is room for an additional 47,680 square feet of expansion area to meet the tenant’s future growth requirements, thus mitigating any future vacancy risk.
investment highlights
- FEDEX CORPORATION (NYSE: FDX) • GLOBALLY RECOGNIZED TENANT ($4.57B NET WORTH) • S&P “BBB” BOND INVESTMENT GRADE CREDIT RATING • CORPORATE LEASE GUARANTY
- The lease is guaranteed by Federal Express Corporation (Standard & Poor’s “BBB” Bond Credit Rating), the world’s largest express transportation company providing a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively under the FedEx brand. Headquartered in Memphis, TN, FedEx ships to more than 200 countries and territories using air, ground and sea networks to link more than 99% of the world’s GDP. In 2019, FedEx reported revenues of over $69 billion and an approximate net worth of $4.47B.
- RARE 2.50% ANNUAL RENT INCREASES • RECENT EARLY 10-YEAR RENEWAL • SUCCESFUL 20+ YEAR OPERATING HISTORY
- FedEx has been operating at this location since 1997 and recently extended their lease early for an additional 10 years (extension commenced May 1, 2018), demonstrating their commitment to the site. Additionally, the double-net lease features annual rent increases of 2.50% in the Primary Term and in the (2) 5-year option periods.
- PART OF THE ROCHESTER TECHNOLOGY PARK • HOME TO PEPSI BOTTLING GROUP, L3 HARRIS, MCKESSON • NEW 2.6 MILLION SF AMAZON WAREHOUSE/DISTRIBUTION FACILITY
- The subject property is located within the Rochester Technology Park, which is home to Pepsi Bottling Group, McKesson, L3Harris, Kodak and more. A new 2.6 million-square-foot Amazon warehouse & distribution facility is currently under construction across the street from the FedEx. The project will cost approximately $412 million upon completion, which is expected to be in mid-2022, and will be the largest facility in the Rochester area. The facility will be open 24 hours a day, seven days a week.
- STRATEGIC LOCATION • FRONTAGE ALONG HWY 531 (36,332 CPD) NEAR THE INTERSECT OF INTERSTATE 490 • QUICK ACCESS TO DOWNTOWN ROCHESTER, GREATER ROCHESTER INTERNATIONAL AIRPORT
- Situated on a large 10.42-acre parcel, this FedEx Express distribution facility is located at the on/off ramp to Hwy 531 (36,332 CPD) offering direct access to Downtown Rochester, just 8 miles to the east. Additionally, Hwy 531 intersects with Interstates 490 & 390, which offers quick access to Greater Rochester International Airport. Proximity to these major highways provides exceptional logistics opportunities for the Tenant, supporting their continued success at this location.
- LOCATED IN ROCHESTER • 3RD-LARGEST CITY IN NEW YORK • GLOBALLY RECOGNIZED ECONOMY WITH HIGHLY EDUCATED WORKFORCE
- The subject property is located just 7 miles from Downtown Rochester, the county seat of Monroe County in northern New York. With an estimated population of 207,000, it is the 3rd-most-populous city after New York City and Buffalo. It is part of the Rochester metropolitan area, which has a population of 1.2 million people. Rochester is a six hour drive from New York City, 3 1/2 hours from Toronto and 90 minutes from Niagara Falls. Rochester is globally recognized for its cutting-edge developments in industries such as optics and imaging, smart energy, research and development, health imaging, and food and beverage manufacturing. With 19 colleges and universities in the Greater Rochester region, local companies are able to pull from a highly-skilled and talented workforce.
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