fedex freight proven strategic location with early lease renewal fedex corporation guarantee

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Theodore Haynes
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1 fedex freight proven strategic location with early lease renewal fedex corporation guarantee 3471 Point N Drive, Tyler, TX

investment highlights FREESTANDING FEDEX FREIGHT FACILITY LOCATED IN TYLER, TEXAS.

..19,860 SF LOT SIZE.... 7.02 AC PRICE PER SF...$135.03 CURRENT RENT.... $9.

the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

2 investment highlights FREESTANDING FEDEX FREIGHT FACILITY LOCATED IN TYLER, TEXAS. THE SUBJECT PROPERTY HAS BEEN A PROVEN LOCATION SINCE 2006 WITH 5 1/2 YEARS LEFT ON EXTENDED 10-YEAR LEASE. PRICE: $2,681,689 CAP: 6.75% RENTABLE SF...19,860 SF LOT SIZE AC PRICE PER SF...$ CURRENT RENT.... $9.21/SF This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Listing Team Contact Info zandy Smith zsmith@capitalpacific.com (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. Listed in conjunction with TX Licensed Broker: Steve Sieling - Azur Commercial Capital, LLC steve@azurcc.com (214) [ REPRESENTATIVE PHOTO ] FEDEX FREIGHT 2

core characteristics STRATEGIC LOCATION Strategically located in Tyler, the subject property is just off of I-20, a major eastwest Interstate Highway in the southern United States.

3 core characteristics STRATEGIC LOCATION Strategically located in Tyler, the subject property is just off of I-20, a major eastwest Interstate Highway in the southern United States. It is approximately 90 minutes from both Dallas, TX, and Shreveport, LA, and is the only FedEx Freight within 39 miles. This state-of-the-art facility has 40 docks with room to expand an additional 12 docks. There s an onsite back-up gas generator, an above ground fuel storage tank, 3,200 square feet of finished office, and the entire site is rimmed with security fencing. LEASE HIGHLIGHTS NN Lease - Landlord is responsible for the roof & structure of the building. 5 1/2 years remaining on the 10-year extended lease, with two (2) five (5) year options. Proven location since 2006 and backed by FedEx Corporation guaranty. Facility has 40 docks with room to add an additional 12 docks. FEDEX FREIGHT Since 2005, FedEx Freight has undertaken a nationwide network expansion to ensure their customers have even greater access to the speed, precision, and certainty FedEx Freight provides to help businesses operating fast-cycle logistics. By offering both priority and economic services, FedEx Freight has the fastest published times of any nationwide LTL service and makes up 17% of freight service market shares. FedEx Freight has more than 370 service centers across the U.S. and Canada, with more than 20,000 motorized vehicles and 40,000 team members worldwide. With over 100,000 shipments per day, the network is continously expanding. 7 miles from interstate 20: a major trucking route connecting texas to south carolina This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. FEDEX FREIGHT 3

aerial BENEFITTING FROM COMBINED TRAFFIC COUNTS IN EXCESS

27, NW int Po Orr 23 p3 Loo Griffin N Broadway Avenue

WITHIN 5 MILES) Pace High School John Tyler High School

Douglas 271 ntr yp ar ay 323 Ramey kw 64 Dallas WILLOW

Caldwell Arts Academy W Front Street Jones 31 Peete 323

This information has been secured from sources we believe

warranties, expressed or implied, as to the accuracy of

4 aerial BENEFITTING FROM COMBINED TRAFFIC COUNTS IN EXCESS OF 56,000 VPD 29,000 DAILY 69 W 323 rive ND Y AIL 0D 00 27, NW int Po Orr 23 p3 Loo Griffin N Broadway Avenue Dogan Middle School HOUSING (66,291 RESIDENTS WITHIN 5 MILES) Pace High School John Tyler High School DALLAS N NW Loop Austin W Boulter Middle School Ge Douglas 271 ntr yp ar ay 323 Ramey kw 64 Dallas WILLOW BROOK GOLF COURSE Highw ay 69 Dixie E Erwin Street 64 Caldwell Arts Academy W Front Street Jones 31 Peete Gary S Broadway Avenue 31 Bonner 31 FEDEX FREIGHT 4 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

5 aerial 7 MILES FROM INTERSTATE 20: A MAJOR TRUCKING ROUTE FROM TEXAS TO SOUTH CAROLINA 8 MIN 7 MILES Interstate 20 MIDLAND DALLAS SHREVEPORT MONTGOMERY SAVANNAH ABILENE TYLER JACKSON COLUMBUS FEDEX FREIGHT 5

income & expense PRICE $2,681,689 Price Per Square Foot: $135.03 Capitalization Rate: 6.75% Total Rentable Area (SF): 19,860 Lot Size (AC): 7.02 STABILIZED INCOME Per Square Foot Scheduled Rent $9.

6 income & expense PRICE $2,681,689 Price Per Square Foot: $ Capitalization Rate: 6.75% Total Rentable Area (SF): 19,860 Lot Size (AC): 7.02 STABILIZED INCOME Per Square Foot Scheduled Rent $9.21 $183,000 Effective Gross Income $9.21 $183,000 LESS Per Square Foot Taxes NNN $0.00 Insurance NNN $0.00 Roof & Structure ($.10) ($1,986.00) Total Operating Expenses ($1,986.00) EQUALS NET OPERATING INCOME $181,014 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. [ REPRESENTATIVE PHOTO ] FEDEX FREIGHT 6

7 rent roll TENANT INFO LEASE TERMS RENT SUMMARY Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Monthly Rent/FT Yearly Rent/FT FedEx Freight 19,860 09/01/12 05/07/23 $183,000 $15,250 $183,000 $0.77 $9.21 Option 1 05/08/23 05/07/28 $0.00 $0.00 Option 2 05/08/28 05/07/33 $0.00 $0.00 Totals: 19,860 $183,000 $15,250 $183,000 $0.77 $9.21 Comments: Increase during the option period is based on CPI Index for prior 30 months not to exceed 7.5%. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. FEDEX FREIGHT 7

site plan CHAIN-LINK SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: 19,860 SF INGRESS/EGRESS: CHAIN-LINK CHAIN-LINK POINT N DRIVE CHAIN-LINK PYLON CHAIN-LINK This site plan is a rendering that has been

8 site plan CHAIN-LINK SITE PLAN KEY PARCEL OUTLINE: RENTABLE AREA: 19,860 SF INGRESS/EGRESS: CHAIN-LINK CHAIN-LINK POINT N DRIVE CHAIN-LINK PYLON CHAIN-LINK This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. FEDEX FREIGHT 8

about fedex FEDEX FREIGHT PACKAGE SYSTEM, LTD. FedEx Freight Package System, Ltd. is a wholly owned subsidiary of FedEx Corporation.

Mexico, Puerto Rico, and the U.S. Virgin Islands. Deliveries are generally made within one to five business days, depending on distance.

FedEx Freight employs over 40,000 team members and handles an average of 100,000+ shipments per day from a network of more than 370 service centers. 2017 REVENUE $6.

9 about fedex FEDEX FREIGHT PACKAGE SYSTEM, LTD. FedEx Freight Package System, Ltd. is a wholly owned subsidiary of FedEx Corporation. FEDEX FREIGHT FedEx Freight provides ground delivery of less-than-truckload (LTL) freight shipping with the choice of FedEx Freight Priority and FedEx Freight Economy throughout the US, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. Deliveries are generally made within one to five business days, depending on distance. The company offers large-volume LTL services via a fleet of more than 20,000 motorized vehicles and company-owned vehicles. FedEx Freight employs over 40,000 team members and handles an average of 100,000+ shipments per day from a network of more than 370 service centers REVENUE $6.4 B YOY REVENUE INCREASE 20% Federal Express Corporation was founded in Little Rock, AR in 1971 and launched its first overnight delivery in The corporation operates with several subsidiaries including FedEx Express, FedEx Ground, and FedEx Freight. FedEx reaches more than 220 countries and delivers over 12 million shipments daily via express, ground, freight, and expedited services. FORTUNE Magazine ranked FedEx No. 8 among the World s Most Admired Companies and No. 1 in the delivery industry (2014) REVENUE $60 B FORTUNE 500 #58 FEDEX FREIGHT 9 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

in the news FEDEX UNDERVALUED AND BACK IN THE DRIVER S SEATA Excerpts from Barron s article on 5/4/2016 - click here to read entire piece.

10 in the news FEDEX UNDERVALUED AND BACK IN THE DRIVER S SEATA Excerpts from Barron s article on 5/4/ click here to read entire piece. Transportation stocks had a rough 2015, but FedEx has jumped 10% so far this year. Wednesday brought more good news with Barclay s analyst Brandon Oglenski upgrading shares of FedEx (ticker: FDX ) from Equal Weight to Overweight, and raising his price target to $205 from $175. We think the combination of solid package market dynamics, a management team more focused on margins over growth and a relatively cheap valuation should support meaningful appreciation for long-term investors, he wrote. FedEx was up 1.3% to $ in recent trading following the report. Though shares already saw their biggest one-day gain since 2002 this year, we also see more upside. Growth in package volume driven by global ecommerce is the lone bright spot in Oglenski s coverage area, and one that should continue to be a tailwind for FedEx. Amazon.com s ( AMZN ) blowout first quarter points to strength in online shopping. Yet while global ecommerce is a well-known story, Oglenski writes that even more importantly (if not as obviously) FedEx is finally addressing a decade long problem of over-capacity in the legacy Express business. Oglenski applauds a greater focus on margins from management, which he believes has allowed the company to sustain its earnings expansion even in a softer macro environment in recent years. Although FedEx has long outperformed the S&P 500, its renewed focus on margins has heartened analysts more recently. FINANCIAL RETURN EXPANSION DRIVES A HIGHER VALUATION ON FDX In his bull case scenario, Oglenski writes that Express profit improvement plan drives continued margin gains, e-commerce supports volume growth, and TNT integration leads to material synergies. Financial return expansion drives a higher valuation on FDX, with an upside case potentially +40%. That would put the shares near $225. Earlier this year, Barron s argued that FedEx could rise 20% and easily end the year at $195. Shares are up 2% since that article s publication compared to a nearly flat S&P 500. FedEx trades at about 13.5 times forward earnings today, but as Barron s argued, a multiple of 15 seems reasonable, given that earnings per share are expected to jump more than 20% year-over-year this year. Also, FedEx s 14.1% long-term growth rate well exceeds the industry average. By comparison, rival United Parcel Service ( UPS ) trades at more than 16.5 times forward earnings with a long-term growth rate below 10%. In his note, Oglenski also said the shares were too cheap considering its earnings outlook and improving returns. We agree and expect FedEx to deliver. FEDEX FREIGHT 10 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

location & demographics FEDEX LOCATION ABOUT TYLER, TX Tyler is the county seat of Smith County, Texas. It is approximately 198 miles north of Houston and 98 miles east of Dallas.

It is host to more than 20,000 higher education students at the Univeristy of Texas at Tyler, two regional billion-dollar hospital systems, and a variety of technology startups.

The Tyler Rose Garden is world-renowned with 14 acres of landscape that includes more than 35,000 rose bushes and 500 varieties of roses.

Also, a variety of museums, historic homes, and a nationally recognized zoo and wildlife refuge provide a variety of entertainment for all ages.

11 location & demographics FEDEX LOCATION ABOUT TYLER, TX Tyler is the county seat of Smith County, Texas. It is approximately 198 miles north of Houston and 98 miles east of Dallas. Tyler is the advanced manufacturing, health-care, and retail center of East Texas. It is host to more than 20,000 higher education students at the Univeristy of Texas at Tyler, two regional billion-dollar hospital systems, and a variety of technology startups. Also known as America s Rose Capital, Tyler is home to the annual Texas Rose Festival, a three-day event that draws thousands of tourists to the city every year. The Tyler Rose Garden is world-renowned with 14 acres of landscape that includes more than 35,000 rose bushes and 500 varieties of roses. Surrounded by multiple lakes and woodlands, Tyler offers a variety of outdoor activities including swimming, fishing, camping, mountain biking, and hiking. Also, a variety of museums, historic homes, and a nationally recognized zoo and wildlife refuge provide a variety of entertainment for all ages. The city has 26 parks, 22 area sporting lakes, 66 tennis courts, 26 baseball fields, 15 soccer fields, and 9 golf courses. REGIONAL MAP FORT WORTH DALLAS 1 HR 30 MIN 98 MILES 2 HR 6 MIN 132 MILES TYLER POPULATION 1-Mile 3-Mile 5-Mile ,168 27,398 62, ,290 29,224 66, ,384 30,424 68, HOUSEHOLD INCOMES 4 HR 20 MIN 229 MILES 3 HR 30 MIN 198 MILES 1-Mile 3-Mile 5-Mile Average $44,922 $45,103 $52,951 Median $36,657 $35,166 $39,317 AUSTIN This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. HOUSTON FEDEX FREIGHT 11

ZANDY SMITH zsmith@capitalpacific.com (415) 274-2707 CA BRE# 01734525 Listed in conjunction with TX Licensed Broker: Steve Sieling - Azur Commercial Capital, LLC steve@azurcc.

12 ZANDY SMITH (415) CA BRE# Listed in conjunction with TX Licensed Broker: Steve Sieling - Azur Commercial Capital, LLC steve@azurcc.com (214) Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. CHRIS KOSTANECKI CHRIS PETERS DAVE LUCAS JACK NAVARRA AARON SUSMAN ZEB RIPPLE JOHN ANDREINI JOE CACCAMO RICK SANNER [ Copyright 2017 Capital Pacific ]

13 Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services B efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner s agent anything the buyer would not want the owner to know because an owner s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer s agent anything the owner would not want the buyer to know because a buyer s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less that the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee s records. Buyer, Seller, Landlord or Tenant Date Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas , ( TREC No. OP-K

Family Dollar RARE WESTERN STATE LOCATION

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