Fedex Services Facility | Critical Business Unit
477 Distribution Pkwy Collierville TN 38017
Price: Contact Broker
Status: Sold
Cap Rate: Contact Broker
Year Built: 1984/Ren 1994 & 2011
NOI: Contact Broker
Lot Size: 9.07 acres
Price Per Foot:
Lease Type: Double-Net (NN)
Remaining Term: 5+ Years
GLA: 126213 sqft
Property Intro
Lee & Associates, in conjunction with Bang Realty-Tennessee, is pleased to exclusively offer for sale the fee simple interest (land & building) in a commercial investment property located in Collierville, TN (the “Property”). Built in 1994 and renovated in 2006 and 2011, the Property consists of a 126,213-square-foot industrial building that sits on an approximately 9.07-acre parcel.
investment highlights
- LEASED TO FEDEX FORWARD DEPOTS, INC., SUBSIDIARY OF FEDEX CORP SERVICES INC. (S&P: BBB+) – LEASE GUARANTY FROM FEDEX CORP (S&P: BBB) – CRITICAL BUSINESS UNIT FOR TENANT
- The building is leased to FedEx Forward Depots, Inc. (a subsidiary of FedEx Services, Inc.), and offers a corporate guaranty by Federal Express Corporation, the world’s largest express transportation company. This facility houses the FedEx TechConnect business unit, which is a more specialized facility for FedEx, making it more difficult to pick up and move locations.
- RARE 2% ANNUAL RENT INCREASES – SUCCESSFUL OPERATING HISTORY – RECENT EARLY 5-YEAR RENEWAL
- FedEx has been operating at this location for 15+ years and recently executed a 5-year lease extension with 2% annual rent increases, reflecting the Tenant’s commitment to the site, and providing an investor with confidence of continued operations.
- FEDEX REQUIRED $2.1M BUILDING EXPANSION IN 2011 TO ACCOMMODATE NEW REPAIR SERVICE CENTER – NEW HVAC UNITS IN 2020
- In 2011, this facility underwent a $2.1M expansion to accommodate a new repair service center and parking lot configuration, complete with a separate entrance for walk-ins. The current owner spent $100,000 to replace all HVAC units in 2020.
- REAL ESTATE ADVANTAGE – PROXIMITY TO FEDEX WORLD HUB: 115,000-SF CORPORATE CAMPUS – STRONG SYNERGY FOR TENANT AT LOCATION
- The location offers proximity to FedEx World Tech Center, a 118-acre, 115,000-square-foot corporate campus consolidating 20 divisions and 3,000 IT employees on a single campus. The FedEx TechConnect center services this World Hub location and providing synergy & support for the tenant at this location.
- STRATEGIC LOCATION – QUICK ACCESS TO HWY 385 INTERSECT WITH INTERSTATE 269 – JUST 23 MILES TO MEMPHIS INT’L AIRPORT: GLOBAL AIR HUB FOR FEDEX – PROXIMITY TO PORT OF MEMPHIS
- The property is located just one mile from HWY 385 at the intersection with Interstate 269 (39,150+ CPD), offering quick access to downtown Memphis. Additionally, the site offers a strategic location just 23 miles from the Memphis International Airport, a FedEx Hub and the second-busiest cargo airport in the world, and the Port of Memphis, the 5th-largest inland port in the nation.
- LOCATED IN COLLIERVILLE, SUBURB OF MEMPHIS – PRO-BUSINESS ENVIRONMENT – HOME OF FEDEX WORLD TECH CENTER, HELENA CHEMICAL, CARRIER CORP, ORGILL – LEADING TRANSPORTATION & LOGISTICS HUB – ROBUST ECONOMY
- The subject property is located in Collierville, a suburb of Memphis, TN. Collierville has been named one of the most desirable communities in the nation and offers a pro-business environment with a highly educated work force. With a central geographic location at the intersect of several major freeways, one of the busiest cargo airports in the world, and a strategically located port with access to the Mississippi River, Memphis has become a multi-modal hub for trading goods for imports and exports despite its inland location, supporting a diverse and robust economy that is the regional center for commerce, education, media, art and entertainment.
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