Investment Property Offering $5,100,000 Presented By: FEDEX DISTRIBUTION CENTER 7600 Caple Boulevard, Northwood, OH 43619 Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844 kase@svn.com Offering Highlights NYSE: FDX - S&P Rated BBB Credit Long-Term Net Leased Distribution Facility Corporate Net Lease Non Recourse Seller Financing- 14.21% Cash on Cash 01/22/2010 7DEOHRI&RQWHQWV )LQDQFLDO$QDO\VLV ([HFXWLYH6XPPDU\ ,QYHVWPHQW,QIRUPDWLRQ )LQDQFLDO6XPPDU\ 5HQW5ROO6XPPDU\ $GGLWLRQDO,QIRUPDWLRQ The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. )LQDQFLDO$QDO\VLV Executive Summary FEDEX DISTRIBUTION CENTER 7600 Caple Boulevard Northwood, OH 43619 List Price Price per S.F. CAP $5,100,000 $56.72 8.64 % Building S.F. Land Acres 89,921 9.43 Net Leased FedEx Regional Distribution Facility Cross Street Market Oregon Road Toledo Tax Parcel Number Sub Market M51-300-240001004000 Wood County Year Built No. of Stories Clear Height Building Class No. of Tenants 1999 1 22' A 1 Zoning Type Ceiling Height Occupancy Location Class Rentable S.F. Industrial 34' 100.00 % A 89,921 Property Descriptions Area Northwood sits in Wood County, Ohio and is part of the Toledo, Ohio Metropolitan Area. The Toledo MSA has an estimated 656,696 residents and four counties sitting in Northwest Ohio. The metropolitan area includes the counties of Fulton, Lucas, Ottawa and Wood. The Toledo area is also the nation's third busiest rail hub, 15th-busiest air cargo hub (Toledo Express Airport), and one of the busiest ports on the Great Lakes. Toledo is also a popular hub location for transportation companies benefiting from its central location. The property sits Adjacent to I-75. Construction The asset was a built-to-suit in order to meet all specifications for current requirements and future growth and ability to expand. The building is single story, block and metal construction, adjacent to I-75 in Northwood (Toledo), Ohio. The height of the property goes from 22' at the low eaves up to 34' at the center of the property. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Property The Seller is offering below-market non-recourse seller financing at a rate of not less than 6.25% interest only, for a term not to exceed 5 years, providing for a 14.21% cash on cash return. The loan is through a Seller affiliate and subject to approval. There is a 1% Loan Fee. This offering is ideal for a passive investor and is the rare opportunity to acquire a net leased (LL Responsible for Roof (warranty in place), Parking (recently redone) and Structure. FedEx Corporation facility with income appreciation (lease calls for fair market rent in each option period). An investor will benefit from below market rent at $4.90 PSF, average FedEx Rent is $8.37 PSF. The asset is priced below replacement cost: $57 PSF. FedEx Corporation (NYSE: FDX) is on the lease and maintains S&P BBB Investment Grade Credit. The critical facility was designed as a build-to-suit for FedEx. FedEx recently renewed the lease for 10 years proving long term occupancy is projected. Parking Major Tenants Adequate on-site parking for autos and trucks. FedEx Corporation (NYSE: FDX), is a leading logistics services company with annual revenues in excess of $37b annually. FedEx Corporation maintains investment grade SS&P BBB credit. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Actual Site Photo Actual Site Photo The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Actual Site Photo Actual Site Photo The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Actual Site Photo Actual Site Photo The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Actual Site Photo The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. $HULDO w w w . s vn . c o m The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Investment Information FEDEX DISTRIBUTION CENTER Listing Price Current CAP 7600 Caple Boulevard Northwood, OH 43619 $5,100,000 8.64 % Price Per S.F. Loan Description $56.72 Building S.F. Land Acres Loan Amount Down Payment 89,921 9.43 $3,570,000 $1,530,000 The Seller is offering non-recourse financing at a rate of not less than 6.25% IO, for a term not to exceed 5 yrs, providing for a 14.21% cash on cash return. The loan is through the a Seller affiliate and subject to approval. There is a 1% Loan Fee. Estimated Annualized Operating Data Net Operating Income Less Loan Payment Pre-Tax Cash Flow Cash on Cash Return Current $440,613 $223,125 $217,488 14.21 % Highlights NYSE: FDX - S&P Rated BBB Credit Long-Term Net Leased Distribution Facility Corporate Net Lease Non Recourse Seller Financing14.21% Cash on Cash The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Financial Summary Estimated Annualized Operating Data Net Operating Income Less Loan Payment Pre-Tax Cash Flow Cash on Cash Return $440,613 $223,125 $217,488 14.21 % Proposed Financial Summary Loan Amount Interest Rate Annual Payment Loan Type Terms and Description Current 6HOOHU$IILOLDWH $3,570,000 6.25% $223,125 Interest Only The Seller is offering non-recourse financing at a rate of not less than 6.25% IO, for a term not to exceed 5 yrs, providing for a 14.21% cash on cash return. The loan is through the a Seller affiliate and subject to approval. There is a 1% Loan Fee. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.s vn .co m Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. FedEx 12/1/1998 11/30/2018 89,921 Total 89,921 Annual Rent S.F. $4.90 Occupied Rent % of Escalations / Options / Comments Total $440,613 100.0 % Two 5-year options to renew at FMV $440,613 100.0 % The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. $GGLWLRQDO,QIRUPDWLRQ Tenant Overview FedEx Corporation (NYSE: FDX), is a leading logistics services company, based in the United States. FedEx is a syllabic abbreviation of the company's original name, Federal Express, used until 1994. The company was founded as Federal Express in 1971 by Fred Smith in Little Rock, Arkansas. The company moved to Memphis, Tennessee in 1973 after Little Rock airport officials would not agree to provide facilities for the fledgling company's airplanes. The name was chosen to symbolize a national marketplace, and to help obtain government contracts. The company began operations on April 17, 1973 with a network of 14 Dassault Falcon 20s which connected 25 U.S. cities, but expanded greatly after airline deregulation in 1978. The company operates much of its U.S. overnight freight through its Memphis hub with other hubs at Indianapolis, Fort Worth, Oakland, Newark, Anchorage, Paris, Cleveland, Subic Bay, Toronto, and Miami. In August 1989 the company acquired Flying Tigers, an international cargo airline. In its purchase of Flying Tigers, the company inherited the former's U.S. military transport contract and carried passengers between the continental United States and overseas military installations until October 1992. In January 1998, Federal Express acquired Caliber System, Inc, which owned Roadway Package System, Roberts Express, Viking Freight, and Caliber Logistics. When these companies combined, the new organization became known as FDX Corp. The name "FedEx" had been a popular, if unofficial, abbreviation for Federal Express for several years before the company chose it as its primary brand name in 1994. The new identity was revealed to the world on June 24, 1994. The "Federal Express" name was eliminated entirely in 2000, when FDX Corporation changed its name to FedEx Corporation and adopted the tagline "The World On Time". In 2000, FedEx and the USPS signed a 7-year contract to carry all the USPS overnight and high-priority mail throughout the FedEx system. The postal contract has recently been extended until 2012 and USPS continues to be one of the largest customers for FedEx. The original Federal Express logo designed by Richard Runyan in 1973In 2001, FedEx acquired American Freightways, a leading less-than-truckload (LTL) carrier, and combined them with Viking Freight to create FedEx Freight. In February 2004, FedEx bought Kinko's, a Dallas-based chain that provides copying/printing and business services, for $2.4 billion. In May 2006, FedEx acquired the assets of Watkins Motor Lines, a leader in long-haul LTL freight transportation for $780 million cash. The purchase allowed FedEx to provide more choices for heavyweight deliveries. The company has been rebranded as FedEx National LTL, and is part of the Fedex Freight segment. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Due for completion in 2008 is the new Asian-Pacific Superhub in Guangzhou Baiyun International Airport in Southern China; replacing FedEx Express' current hub in Subic Bay, Philippines and increasing service levels and demands in Southern Asia. In its advertising, the company made famous the line "Absolutely, positively" for their overnight service; the original phrase was "When it absolutely, positively has to get there overnight." Another slogan, "Relax, it's FedEx", is well recognized. For several years the company promoted the slogan "Don't panic", particularly on buttons. Throughout Europe, the marketing tag line is "whatever it takes". Major competitors include UPS, DHL, and TNT, in addition to post office organizations around the globe. FedEx Corporation Ticket (NYSE): FDX Credit Rating (Standard & Poor’s): BBB Founded: 1971 Headquarters: Memphis, Tennessee, United States Key people: Frederick W. Smith, Chairman, President, CEO Alan B. Graf Jr., EVP/CFO T. Michael Glenn, EVP-Marketing Robert B. Carter, EVP/CIO Industry: Air Courier Revenue (estimated): $36 billion USD (2008) Operating income (estimated): $3.014 billion USD (2006) Net income (estimated): $1.806 billion USD (2006) Employees (estimated): 275,000 (2006) Subsidiaries: FedEx Kinko's, FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Supply Chain, FedEx Trade Networks, FedEx Services For more information on FedEx, please visit www.fedex.com The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness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1< State 7; ,/ 71 0, 71 .< 1( 71 71 25 1& 5, 1< 2+ 25 State Year Year Size Sale Price <HDUV <HDUV <HDUV <HDUV Term Remaining Size List Price FedEx In Contract <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV <HDUV Term Remaining FedEx Sold 2009 List Cap Sale Cap $/SF 0DUFXV0LOOLFKDS 1HZPDUN)UDQN 6WDQ-RKQVRQ -RQHV Broker $/SF 1HZPDUN)UDQN 0DUFXV0LOOLFKDS 6WDQ-RKQVRQ 0DUFXV0LOOLFKDS Broker 1$ 1$,%7 1$,%7 1$ +)) 0DUFXV0LOOLFKDS 0DUFXV0LOOLFKDS 6WDQ-RKQVRQ 0DUFXV0LOOLFKDS -RQHV 0DUFXV0LOOLFKDS1$, 1$ 1$ In Contract Sold Date 2KLR)HG([([SUHVV/RFDWLRQV Market Street Address City State 7ROHGR &DSOH%OYG 1RUWKZRRG 2KLR Zip Code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he information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. /RFDWLRQ0DS w w w . s vn . c o m