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 – Limited Future Vacancy Risk – Built in 1999 as a build to suit for FedEx, the Property consists of a 95,294-square-foot building that sits on an approximately 6.91-acre parcel. The building features (7) loading doors, expansive parking, and a vehicle maintenance shop with (3) drive-in bays. There is room for an additional 13,515 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 Interstates 295 & 10 – Strategic Location Only 16 Miles to Jacksonville International Airport, Naval Air Station Jacksonville – Situated on a large 6.91-acre fenced parcel, this FedEx distribution facility is located along Commonwealth Avenue near the intersection of Interstates 295 and 10. Nearly 200,000 vehicles pass through these highways each day. Additionally, the property is strategically located just 16 miles from the Jacksonville International Airport, which serves as the region’s airport, seeing nearly 665,000 arrivals/departures per year; and 16 miles from Naval Air Station Jacksonville, the largest Navy base in the Southeast Region and third largest base in the nation.
Successful 20+ Year Operating History – Early 10-Year Lease Extension – Commitment to Site – FedEx has been operating at this location for 20 years and recently extended their lease an additional 10 years (lease commenced June 1, 2019), demonstrating their commitment to the site. Additionally, the double-net lease features a rent increase of 5% in Year 6, and has (2) 5-year renewal options available.
Located in the City of Jacksonville – Most Populous City in Florida – Transportation Hub – The subject property is located in the city of Jacksonville, in northeastern Florida. Jacksonville is the most populous city in Florida, the most populous city in the southeastern United States, and the largest city by area in the contiguous United States. It is a rapidly growing metropolitan city, with approximately 850,000 residents.
Due to its convenient location, mild climate, reasonable cost of living, high quality of life and a business-friendly government, Jacksonville is a popular location for corporate expansions and relocations. Its status as an intermodal transportation hub is another incentive, and the city is also a leading distribution center, with a transportation network that moves millions of tons of raw materials and manufactured goods through the region annually.