OFFERING MEMORANDUM FEDEX FREIGHT 2451 Portico Blvd, Calexico, CA 92231 I N D U S T R I A L
contents 03 04 08 11 EXECUTIVE SUMMARY financial OVERVIEW 06 PROPERTY OVERVIEW tenant overview area OVERVIEW exclusively listed by kyler bean Industrial Specialist kyler.bean@matthews.com DIR 214.692.2192 MOB 325.227.0893 LIC # 646910 (TX) JOHNNY DUNN, MBA Industrial Specialist johnny.dunn@matthews.com DIR 214.692.2114 MOB 817.372.1742 LIC # 677506 (TX) CHAD KURZ SVP & National Director chad.kurz@matthews.com DIR 214.692.2927 MOB 562.480.2937 LIC # 01911198 (CA) 2 MATTHEWS REAL ESTATE INVESTMENT SERVICES
EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Strong Hedge Against Inflation - 3% Annual Rental Increases Strong Commitment to Location - FedEx has been at the location since 1992 and the building was renovated and expanded in 2008 Very Functional Building - 10,080 SF with 21 Dock High Doors and 1 Dock Ramp on 3.31 acres of truck parking Minimal Landlord Responsibilities - Roof and Structure Corporate Guarantee - FedEx Corp. (Parent) Standard which is rated BBB Credit Development Opportunity - Additional land next door for future development Strategic Location - Calexico is situated adjacent to the international border with Mexico offering the site important transportation needs between the U.S. and Mexico. This FedEx Freight site is strategically located 4.4 miles from the Mexico Border and the city of Mexicali Mexicali is the capital of Baja California and has a population of over 1 million people. Mexicali has become the leading economic center of Mexico s manufacturing and assembly plants, also known as the Maquiladora program. Over 3,000 Maquiladoras exist along the 2,000 mile-long United States Mexico border, providing employment for approximately one million workers, and importing more than $51 billion in supplies into Mexico. Mexicali serves as a primary source of manufacturing and assembly for several major industries such as Aerospace, Automotive, Electronics, Food, Medical, Mechanical, Plastic, and Renewable Energy. Most products manufactured and assembled in Mexicali are exported through the International Border and distributed through Calexico, California. Fedex freight, calexico, ca 3
FINANCIAL OVERVIEW 4 MATTHEWS REAL ESTATE INVESTMENT SERVICES
Tenant Summary EXECUTIVE SUMMARY Property Name Property Street Gross Leaseable Area Lot Size FedEx Freight 2451 Portico Blvd Calexico, CA 92231 ± 10,080 SF ± 3.31 Acres (144,183 SF) Tenant Trade Name FedEx Freight West Inc. Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof and Structure Landlord Responsibility Original Lease Term 5 Years Rent Commencement Date 7/11/2017 Lease Expiration Date 7/10/2022 Term Remaining on Lease ± 5 Years Options One, 5-Year Option Increases 3% Annually Annualized Operating Data Monthy Rent Annual Rent Cap rate 7/11/2017-7/10/2018 $32,529.30 $390,351.60 6.25% 7/11/2018-7/10/2019 $33,505.18 $402,062.16 6.44% 7/11/2019-7/10/2020 $34,510.33 $414,123.96 6.63% 7/11/2020-7/10/2021 $35,545.64 $426,547.68 6.83% LIST PRICE CAP RATE TERM REMAINING 7/11/2021-7/10/2022 $36,612.01 $439,344.12 7.03% OPTION 1-5 YEAR $37,710.37 $452,524.45 7.25% $6,245,000 6.25% ± 5 Years Fedex freight, calexico, ca 5
PROPERTY OVERVIEW 6 MATTHEWS REAL ESTATE INVESTMENT SERVICES
THE OFFERING ADDRESS SITE DESCRIPTION CONSTRUCTION 2451 Portico Blvd Calexico, CA 92231-9648 GLA ± 10,080 SF CROSS DOCK LOT SIZE ± 3.31 Acres FOUNDATION Concrete YEAR BUILT / EXPANDED 1992 / 2008 ROOF Metal Panel EXTERIOR Metal Panel PARKING SURFACE Concrete FRAMING Steel 21 DOCKS 1 Dock Ramp Fedex freight, calexico, ca 7
TENANT OVERVIEW 8 MATTHEWS REAL ESTATE INVESTMENT SERVICES
FEDEX CORPORATION FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenues of $50 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 FREIGHT The company s FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports. This segment also publishes customs duty and tax information and offers transportation management and temperature-controlled transportation services. Its TNT Express segment provides international express transportation, small-package ground delivery, freight transportation services and business-to-consumer services. Its FedEx Freight segment offers less-than-truckload freight and freight-shipping services. As of May 31, 2017, this segment operated approximately 66,000 vehicles and trailers from a network of approximately 370 service centers. The company s FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels view account-specific rate quotes, and access dropoff location information; copying and digital printing, professional finishing, document creation, direct mail, signs and graphics, computer rentals, and ground shipping and time-definite shipping services; and packing services, supplies, and boxes. REVENUE $6.4 BILLION NO. OF EMPLOYEES ± 40,000 MOTORIZED VEHICLES ± 20,000 SERVICE CENTER LOCATIONS ± 3,700 SHIPMENTS (AVG. DAILY VOL.) ± 100,000 HEADQUARTERED MEMPHIS, TENNESSEE WEBSITE WWW.FEDEX.COM Fedex freight, calexico, ca 9
TENANT MAP 10 MATTHEWS REAL ESTATE INVESTMENT SERVICES
AREA OVERVIEW AT 6. 5 M I L L I O N RESIDENTS, CALIBAJA S POPULATION IS THE LARGEST CONCENTRATION OF POPULATION ALONG THE U.S.-MEXICO BORDER. CALEXICO, CA Calexico is an ethnically and culturally rich and diverse city in Imperial County, California located along the international border with Mexicali, Baja California, Mexico. Positioned in the Cali Baja Bi-National Mega-Region, a globally unique bi-national area that encompasses the entirety of California s U.S.-Mexico border region, Calexico has a bright future and unlimited potential. Its distinguished status as an international gateway city allows it to capitalize on the trade, commerce, culture, and energy of the emerging Latin American markets. Fedex freight, calexico, ca 1 1
IDEAL LOCATION Calexico s strategic location is seen by many as the prime link between the interior of Mexico and the major markets along the west coast of the U.S. and Canada. The city provides the area easy overnight trucking access to all transportation hubs plus the ports of Long Beach and Ensenada, Baja California, Mexico. Calexico offers the most affordable prime commercial/industrial sites, and energy resources in the state; There are numerous industrial park sites ready for occupancy or construction. POPULATION 1 Mile 3 Mile 5 Mile 2022 Projection 4,548 43,075 50,127 2017 Estimate 4,518 42,610 49,501 2010 Census 4,323 40,819 47,782 Growth 2017-2022 0.67% 1.09% 1.26% HOUSEHOLD 1 Mile 3 Mile 5 Mile 2022 Projection 1,280 11,838 13,645 2017 Estimate 1,244 11,471 13,200 2010 Census 1,166 10,703 12,408 Growth 2017-2022 2.91% 3.20% 3.37% INCOME 1 Mile 3 Mile 5 Mile 2017 Est. Average Household Income $50,517 $51,542 $53,744 12 MATTHEWS REAL ESTATE INVESTMENT SERVICES
IMPERIAL VALLEY With an extensive amount of renewable resources, a wide-range of cultural and outdoor recreational activities, Imperial County has much to offer residents and tourists alike. The county has a rich agricultural heritage as thousands of acres of prime farmland have transformed this desert region into one of the most productive farming regions in California: Annual crop production exceeds $1 billion. Responsible for producing half of the United States winter vegetables, Imperial County s largest industry is agriculture, which accounts for 48% of all employment. Tourism is the secondary industry of the Imperial Valley. Visitors are drawn to the area by the Salton Sea and its neighboring mud pots and volcanoes, the Algodones Dunes and the Imperial Sand Dunes Recreation Area. A recent growing interest in the area as a filming location has spurred growth in servicing the film industry. Attributed to the county s desert environment and proximity to Los Angeles, several movies have been filmed in the sand dunes outside the agricultural portion of the county: Return of the Jedi, Stargate, The Scorpion King, Into the Wild and some portions of Jarhead. 9 TH LARGEST COUNTY IN CALIFORNA ± 180,000COUNTY RESIDENTS
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of FedEx Freight located at 2451 Portico Blvd, Calexico, CA 92231 ( 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: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. 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.
exclusively listed by OFFERING MEMORANDUM FEDEX FREIGHT 2451 Portico Blvd, Calexico, CA 92231 I N D U S T R I A L kyler bean Industrial Specialist kyler.bean@matthews.com DIR 214.692.2192 MOB 325.227.0893 LIC # 646910 (TX) JOHNNY DUNN, MBA Industrial Specialist johnny.dunn@matthews.com DIR 214.692.2114 MOB 817.372.1742 LIC # 677506 (TX) CHAD KURZ SVP & National Director chad.kurz@matthews.com DIR 214.692.2927 MOB 562.480.2937 LIC # 01911198 (CA)