OFFERING MEMORANDUM I N D U S T R I A L FEDEX GROUND 59 FRESA PARKWAY I BRIDGEPORT, WEST VIRGINIA
EXCLUSIVE LISTING AGENTS: ALEX HARROLD Senior Associate GARY CHOU FVP & Senior Director DIRECT 1 310 919 5790 MOBILE 1 310 977 1651 alex.harrold@matthews.com LIC # 02009656 (CA) DIRECT 1 310 919 5827 MOBILE 1 714 928 8016 gary.chou@matthews.com LIC # 01911222 (CA) BROKER OF RECORD GILLIAN GREENFIELD Broker of Record LIC # WV0026307 (WV)
I N D U S T R I A L CONTENT INVESTMENT SUMMARY 5 TENANT OVERVIEW 8 PROPERTY SUMMARY 10 MARKET & LOCATION OVERVIEW 12
S E C T I O N INVESTMENT SUMMARY O N E 1
INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS Attractive Return 8.5% CAP with 4 years remaining on the primary lease with rental increases in the (2), Three (3) year options Expandable Facility FedEx maintains an option to expand the facility by 6,420 SF. This allows the tenant to increase their capacity if needed in the future to support increased demand Passive Lease NN+ Lease with landlord only responsible for the roof and structure. The facility is within a close vicinity of Interstate-79 Primary thoroughfare for Western Pennsylvania and West Virginia, which is the only major highway linking Charleston, WV, and Pittsburg, PA home to the Headquarters of FedEx Ground Package System, Inc. FedEx must maintain their presence here to serve the surrounding area between West Virginia s capital city and Pittsburg, PA. FedEx has established this location as a hub by having a FedEx Freight facility adjacent to the FedEx Ground. Strong Tenant - FedEx Ground is the highest yielding FedEx Corp. service line and has the largest connected network of industrial facilities in the country MATTHEWS REAL ESTATE INVESTMENT SERVICES 5
TENANT SUMMARY FEDEX GROUND 59 Fresa Parkway Bridgeport, WV 26330 List Price $2,965,000 Cap Rate - Current 8.50% Price/SF $77.25 GLA Lot Size Year Built 2006 ± 38,383 SF ± 7.50 Acres Tenant Square Feet FedEx Ground Package System, Inc ± 38,383 SF Rent Commencement 10/27/2006 Lease Expiration 10/31/2021 Term Remaining 4 Years Annualized Operating Data Montly Rent Annual Rent Rent/SF Cap Rate Primary $21,004.26 $252,051.12 $6.57 8.50% Option 1 $22,054.47 $264,653.64 $6.90 8.93% Option 2 $22,716.10 $272,593.20 $7.10 9.19% Current Annual Rent $252,051.12 Type NN - Roof and Structure Only Tax, Utilities & Insurance Tenant Responsible Roof & Structure Landlord Responsible Increases 5% Increase in Option 1; 3% Increase in Option 2 Options Two, 3-Year Options 6 FEDEX PROPERTY OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES 6
MATTHEWS REAL ESTATE INVESTMENT SERVICES 7
TENANT OVERVIEW FEDEX CORPORATION FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenues of $58 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.fedex Ground is a leading North American provider of ground small-package delivery services, providing service to the U.S. and Canada. FedEx Home Delivery, the industry s first ground service dedicated to residential delivery, is available from FedEx Ground and provides Saturday delivery for no additional charge. FedEx SmartPost is a ground service that specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages primarily using the U.S. Postal Service for last mile delivery to residences. FedEx Ground business segment financial results include FedEx Supply Chain, one of the largest third-party logistics providers in North America. FEDEX GROUND The Company s FedEx Ground segment operates through FedEx Ground Package System, Inc. (FedEx Ground), which is a North American provider of small package ground delivery services. The segment provides day-certain service to any business address in the United States and Canada, as well as residential delivery to residences in the United States through its FedEx Home Delivery service. As of May 31, 2016, the FedEx Ground segment operated a multiple hub-and spoke sorting and distribution system consisting of 575 facilities, including 33 hubs, in the United States and Canada. To provide FedEx Home Delivery service and FedEx SmartPost Service, the FedEx Ground segment leverages its pickup operation and hub and line haul network. FedEx Ground provides shipment tracing and proof-of-delivery signature functionality through its Website, fedex.com. QUARTERLY OPERATING INCOME $1,800 FEDEX GROUND REVENUE (FY 2016) Revenue (in millions) $16,574 Margin 13.70% Operating Income (in millions) $2,276 Average Daily Volume 7,526 in millions $1,600 $1,400 $1,200 $1000 $800 $600 $400 $200 $0 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Nov 13 Feb 14 May 14 Aug 14 Nov 14 Feb 15 May 15 Aug 15 Nov 15 Feb 16 May 16 8 FEDEX PROPERTY OVERVIEW
S E C T I O N PROPERTY OVERVIEW T W O 2 MATTHEWS REAL ESTATE INVESTMENT SERVICES 9
THE OFFERING Address 59 Fresa Parkway Bridgeport, WV 26330 APN 17-15-228-078.0003 Zoning I - Industrial SITE DESCRIPTION GLA Lot Size ± 38,383 SF ± 7.50 Acres (326,700 SF) CONSTRUCTION Framing Lot Size Steel Year Built 2006 Expansion Parking Roof ± 7.50 Acres Option to Expand Building by 6,420 SF Asphalt Clear Height ± 24 Dock-high Doors 16 Drive-In Doors 8 Standing Seam Metal 10 FEDEX PROPERTY OVERVIEW
S E C T I O N MARKET & LOCATION OVERVIEW T H R E E 3
LOCATION OVERVIEW The city of Bridgeport, WV is strategically located in North Central West Virginia, two hours north of Charleston (The Capital of West Virginia), and two hours of south of Pittsburgh, PA. The city of Bridgeport is located at the intersection of US Route 50 east and west and Interstate 79 north and south. The cities location makes it convenient and a smart choice for new businesses, small industries, and supply and retail businesses. Its recreational and business opportunities are the reason Bridgeport has earned the tagline, Opportunity lives here. In the last 5 years, the city has put $390 million dollars into the development of the community and it has transformed the city into a thriving city for both business and its residents. Major employers in Bridgeport include North Central West Virginia Regional Airport, Meadowbrook Mall, Pratt & Whitney, Aurora Flight Services, Bombardier Service America, Robert C. Byrd Technology Institute, and Fairmont State University. PROPERTY DEMOGRAPHICS 3-Mile 5-Mile 7-Mile 2017 Estimate 4,379 21,720 49,100 HOUSEHOLDS 3-Mile 5-Mile 7-Mile 2017 Estimate 1,832 9,099 20,731 INCOME 2017 Est. Average Household Income 2017 Est. Median Household Income 3-Mile 5-Mile 7-Mile $53,643 $65,190 $64,999 $38,197 $45,211 $44,352 12 FEDEX PROPERTY OVERVIEW
NEIGHBORING INDUSTRIAL TENANTS National Oilwell Varco Subject Property MATTHEWS REAL ESTATE INVESTMENT SERVICES 13
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the FedEx Ground located at 59 Fresa Parkway, Bridgeport, WV ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: The Offering Memorandum and its contents are confidential; You will hold it and treat it in the strictest of confidence; and You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
I N D U S T R I A L EXCLUSIVE LISTING AGENTS: ALEX HARROLD Senior Associate DIRECT 1 310 919 5790 MOBILE 1 310 977 1651 alex.harrold@matthews.com License # 02009656 (CA) GARY CHOU FVP & Senior Director DIRECT 1 310 919 5827 MOBILE 1 714 928 8016 gary.chou@matthews.com License # 01911222 (CA) FEDEX GROUND 59 FRESA PARKWAY I BRIDGEPORT, WV