FedEx Distribution Facility | Recent 10 Year Lease Extension
Raleigh, NC
Price: $11,928,000Cap Rate: 5.50%Building SF: 96,054 SFLot Size: 11.13 AcresYear Built: 1997Status: Under Contract

Investment Highlights: 

FedEx Corporation (NYSE: FDX) – Globally Recognized Tenant ($4.57B 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 2018, FedEx reported revenues of over $65 billion and an approximate net worth of $4.57B.

Build to Suit Construction – Allowance for Future Building Expansion – Limited Future Vacancy Risk – Built in 1997 as a build to suit for FedEx, the Property consists of a 96,054-square-foot building that sits on an approximately 11.13-acre fully fenced parcel. The building features ten (10) loading doors, expansive parking, and a stand-alone vehicle maintenance shop with (4) drive-in bays. There is room for an additional 10,000-20,000 square feet of expansion to meet the tenant’s future growth requirements and thus mitigate any future vacancy risk.

Real Estate Advantage – Located Adjacent to Intersection of Interstate 440 & Hwy 401 – Strategic Location Only 16 Miles from Raleigh-Durham International Airport – Situated on a large 11.13-acre fenced parcel, this highly visible FedEx distribution facility is located along Atlantic Avenue (27,000+ CPD), near the intersection of Interstate 440 and Highway 401. More than 205,000 vehicles pass through these highways each day. Additionally, the property is strategically located just 16 miles from the Raleigh-Durham International Airport, which is a main connector hub to Indianapolis, Memphis, New Bern, and Wilmington.  

Successful 20+ Year Operating History – Early 10-Year Lease Extension – Commitment to Site – FedEx has been operating at this location for over 20 years and has demonstrated their commitment to this location by extending their lease for an additional 10 years in June 2017 ahead of schedule. There are currently more than 8 years remaining on the double-net lease, with (2) 5-year renewal options available.

Located in the City of Raleigh: Capital of North Carolina – Employment Growth – Tourism Destination – The subject property is located within the highly desirable city of Raleigh, the capital of North Carolina and the county seat of Wake County. With a population of 1.34 million people (2017), Raleigh is the second-largest city in the state, after Charlotte. Raleigh has become a highly desirable city; it is seeing recent employment growth of 2.71% and welcomed 16.45 million visitors to the area in 2017. Both visual and performing arts are important here, and the area has the most live music venues concentrated here than anywhere else in the state and has more than 15 percent of the state’s craft breweries, making it a capital of craft beer. 

Located Within Highly Sought-After Research Triangle in the Research Triangle Park – One of the Most Prominent High Tech R&D Parks in the Country – Raleigh is home to North Carolina State University (NC State) which is part of Research Triangle Park (RTP), together with Durham (home of Duke University and North Carolina Central University) and Chapel Hill (home of the University of North Carolina at Chapel Hill). RTP is one of the most prominent high-tech research and development parks in the country, and is home to more than 250 companies and 50,000 people with expertise in fields such as micro-electronics, telecommunications, biotechnology, chemicals, pharmaceuticals, and environmental sciences. Industries invest more than $300 million in R&D at the region’s universities each year – double the average R&D investment for innovation clusters elsewhere in the nation.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977