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 – Large Fenced Parcel – Extensive Loading Capacity & Parking – Built in 1998 as a build to suit for FedEx, the Property consists of a 92,450-square-foot building that sits on an approximately 10.412-acre fenced parcel. The building features (11) loading doors, expansive parking, and a vehicle maintenance shop with (3) drive-in bays.
Drive-Around Truck Access – Proximity to Interstates, Airport – Ease of Distribution – Situated on a large 10.412-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. Additionally, the subject property is located just a half mile from Interstate 820 at the interchange of Interstate 35W for quick access to downtown Fort Worth less than eight miles to the south. Additionally, the property is strategically located just 5 miles from the Fort Worth Meacham International Airport, which sees 1,800 flights per day and is undergoing an expansion, with new hangars and a renovated terminal and administration building.
Successful 22 Year Operating History – Multiple Lease Extensions – Commitment to Site – 20% Rent Increase in August 2023 – The Tenant has occupied 100 percent of the facility since completion of the build-to-suit construction in 1998. They have since extended the lease twice, the most recent in August 2018, extending their term another ten (10) years and agreeing to a 20% rent increase in August 2023. The combination of the newly executed 10-year lease extension, ideal property layout, and historical long-term tenancy of the tenant provides an investor with mitigated future vacancy risk and a high probability of future lease renewals.
Located in Fort Worth – 5th Largest City in Texas – Ideal Location for Business – Major Center for Industry, Distribution – The subject property is located Fort Worth, TX, the fifth-largest city in Texas and the 13th-largest city in the United States. According to the 2018 census estimates, Fort Worth’s population is 895,008, making it the second-largest city in the Dallas–Fort Worth–Arlington metropolitan area, which is the 4th most populous metropolitan area in the United States.
Fort Worth has seen the job market increase by 2.7% over the last year. Future job growth over the next ten years is predicted to be 41.5%, which is higher than the US average of 33.5%. Fort Worth’s central U.S. location, cost effective environment, highly skilled workforce, abundant labor pool, quality and plentiful education, and pro-business attitude help make Fort Worth an ideal location for any business. As a result, it has become a major center for industry, technology, distribution and transportation. American Airlines, Lockheed Martin, BNSF Railway, Acme Brick, Justin Brands and GE Manufacturing Solutions are among the top employers that call Fort Worth home. With more than 80,000 businesses, Fort Worth ranks among the top business destinations in the world.