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
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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.
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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.
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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.
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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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