FedEx Corporation (NYSE: FDX) – Globally Recognized Tenant ($4.47B Net Worth) – 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 $69.7 billion and an approximate net worth of $4.47B.
Build to Suit Construction – Extensive Loading Capacity & Parking – Built in 1997 as a build to suit for FedEx, the Property consists of a 69,641-square-foot building that sits on an approximately 8.51-acre parcel. The building features (10) loading doors, expansive parking, and a vehicle maintenance shop with (1) drive-in bay.
Real Estate Advantage – Quick Access to Interstate 95 Via SR-87 – Less Than One Mile from Fayetteville Regional Airport – Situated on a large 8.51-acre parcel, the Tenant’s distribution process benefits from the securely gated full-circulation design, which provides trucks an excellent in/out flow around the site. The property is located just 3 miles from SR-87 to connect to Interstate 95 for quick access to Raleigh-Durham (70 miles north), Charlotte (135 miles east) and other major cities beyond. Additionally, the property is strategically located less than a mile from the Fayetteville Regional Airport.
Successful 23 Year Operating History – 2.8% Annual Rent Increases – Multiple Lease Extensions – Commitment to Site – FedEx has been operating at this location for 23 years and extended their lease an additional 10 years in 2017, demonstrating their commitment to the site. The lease features 2.8% annual rent increases and has (2) 5-year renewal options available, providing an investor with strong rent growth and minimal maintenance responsibilities.
Located in Fayetteville – 5th-Largest MSA in North Carolina – Located on I-95 Corridor – One Day’s Drive to 3/4 of Nation’s Population – The subject property is located in Fayetteville, the county seat of Cumberland County, North Carolina. With an estimated population of more than 386,000 people, it is the largest metropolitan area in southeastern North Carolina, and the fifth-largest in the state. Located in the middle of the I-95 corridor, Fayetteville is strategically located within a day’s drive of three-fourths of the nation’s population — including Philadelphia, Baltimore, Washington, D.C., Charleston, Atlanta and New Orleans — and close to the East Coast’s largest ports. It’s a quick drive from all the educational and innovation resources of Raleigh and the Research Triangle and is situated along the Norfolk Southern and CSX rail lines.
Fayetteville is the home of Fort Bragg, a major U.S. Army installation northwest of the city, and, by population, the largest military installation in the world with more than 50,000 active duty personnel. Fort Bragg is the backbone of the county’s economy, contributing an estimated $4.5 billion a year into the region’s economy, making Fayetteville one of the best retail markets in the country.
Tourism also plays a large part of the region’s economy. The Fayetteville Area Convention & Visitors Bureau reported tourism had an economic impact of $550 million in 2018 and is connected to 4,400 jobs with a payroll exceeding $93 million.