FEDEX FREIGHT 10 Year Double Net lease Extension Recent Major Improvements Actual Location Ben Schultz Senior Advisor bschultz@fnlre.com 248.254.3409 Bryan Bender bbender@fnlre.com 248.419.3810
TABLE OF CONTENTS Investment Offering Property & Lease FedEx Location Area & Demographics DISCLOSURE All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as FNL ), its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws. IA Broker of Record Steve Moore Steve Moore Real Estate
INVESTMENT OFFERING Price $4,352,496 Cap Rate 6.50% Current NOI $282,912.24 Lease Type: Responsibilities: Tenant: Guarantee: Strength: 10 Year Double Net Roof, Structure, Parking Lots FedEx Freight East Inc Corporate Private Square Feet: 14,800 Fortis Net Lease is pleased to present this 14,800 SF FedEx Freight located in Sioux City, IA. The property is encumbered with a new Ten (10) Year double net (NN) Lease extension, leaving limited landlord responsibilities. The lease contains rent increases every five years of 3.75%. The lease contains two (5) Yr. Options to renew, each with a rent increase. The lease is corporately guaranteed by FedEx Freight East, Inc. The landlord is responsible for maintenance and replacement of the roof and structure, sidewalks, driveways and parking lots. The current owner recently added a large addition to the building, now offering 44 loading docks. The owner also added new concrete paving. Warranties are in place and transferable. This FedEx Freight property is strategically positioned in Sioux City, IA, The five mile population from the site exceeds 53,000 while the two mile median household income is greater than $41,500 per year. The Subject offering represents an ideal opportunity for a buyer to attain the fee simple ownership of a FedEx Freight. This investment will offer a new owner continued success due to the financial strength and the proven profitability of the tenant, the world s largest express transportation company. List price reflects a 6.50% cap rate based on NOI of $282,912.24. Actual Location Double Net Lease Recently Extension Limited Responsibilities 20 Year Tenant 10 Year Term Two (5 Year) Options Two Mile Household Income $41,930 Five Mile Population Exceeds 53,000 Recent Major Site Improvements
PROPERTY & LEASE Year Renovated 2016 Style Prototype FedEx Freight Tenant Guarantor FedEx Freight East, Inc FedEx Freight East, Inc Acreage 4.40 Acres Square Feet 14,800 Foundation Concrete Slab Roof Standing Seam Roof HVAC Ground Mounted Parking Concrete Zoning Commercial Address Lease Type Double Net (NN) Extended Term Ten (10) Years Rent Extended 9/1/2016 Rent End 9/1/2026 Annual NOI $282,912.24 Rent Increases 3.75% Every Five Years Option Periods Two (2) Five (5) Year Options Website www.fedex.com Status Tenant Since 1998 Ownership Type Fee Simple Rent Schedule Lease Years Annual Rent Monthly Rent Bump 1-5 $282,912.24 $23,576.02-6 - 10 $293,517.12 $24,459.76 3.75% 11-15 Option 1 $304,524.12 $25,377.01 3.75% 16-20 Option 2 $315,943.80 $26,328.65 3.75% Actual Location
PROPERTY & LEASE
FedEx Freight The subject property originally was leased to American Freightways, Inc, which was purchased by FedEx Freight, in 2001. The property was re-branded as FedEx and was able to take advantage of the long operating history at the site. FedEx Freight is a less than truckload (LTL) and other freight services provider. They are the largest LTL carrier in the United States, with $5.8 Billion in revenue. Federal Express Corporation is the world s largest express transportation company, offering time-certain delivery to more than 220 countries and territories, connecting markets that comprise more than 90% of the world s gross domestic product. It is one of the four segment offerings which comprise the world s largest commerce provider, FedEx Corp. (NYSE: FDX). The FedEx Express segment also includes FedEx Trade Networks, Inc., which provides international trade services, specializing in customs brokerage and global ocean and air freight forwarding, and FedEx SupplyChain Systems, Inc., which offers a range of supply chain solutions. The consolidated company, FedEx Corporation, offers a broad range of services and solutions which link 99% of the world s GDP. Over the past twelve months (as of May 31, 2016), FedEx Corporation generated over $50.36 billion in revenues yielding it over $1.82 billion in net income. FedEx Corporation s net worth is greater than $14.32 billion, more than $10.56 billion tangible. The Company currently holds investment grade credit ratings of BBB/Stable (S&P). World Wide Shipping Investment Grade S&P Rating of BBB $47.45 Billion in Sales in Fiscal 2016 Ranked #192 on Global Fortune 500 2016 Profits $1.05 Billion Revenue Increase was 4.1% From 2015 Ranked #58 on US Fortune 500
LOCATION Alva, FL Total Population 2 Miles... 2,747 3 Miles... 20,208 5 Miles... 53,080 Household Income 2 Miles... $41,930 3 Miles... $59,042 5 Miles... $52,214
FedEx Sioux City, IA LOCATION
LOCATION
Sioux City, IA Sioux City is a city in Woodbury and Plymouth counties in the northwestern part of Iowa. The population was 82,684 in the 2010 census, which makes it the fourth largest city in Iowa. The bulk of the city is in Woodbury County, of which it is the county seat, though a small portion is in Plymouth County. Sioux City is located at the navigational head of the Missouri River. Often the city and surrounding area is referred to as Siouxland, especially by the local media and residents. The city is home to several cultural points of interest including the Sioux City Public Museum, Sioux City Art Center and Sergeant Floyd Monument, which is a National Historical Landmark. The city is also home to Chris Larsen Park, commonly referred to as the Riverfront, includes the Anderson Dance Pavilion, Sergeant Floyd Riverboat Museum and Lewis and Clark Interpretive Center. Sioux City has received national attention for being ranked by Smart Asset as a top 10 Most Livable Small Cities in 2018. During 2017 Sioux City was also ranked as one of the Best City to Build a Forever Home by Goodcall, as well as the #1 ENERGY STAR Top Small City, as ranked by the U.S. EPA. Goodcall also named Sioux City in their Top 100 2017 Overlooked Dream Cities. AREA & DEMOGRAPHICS Population 2 Mile 3 Mile 5 Mile 2017 Total Population 2,747 20,208 53,080 2022 Total Population 2,806 20,386 53,477 Population Growth 2.15% 0.88% 0.75% Households 2017 Total Households 1,124 7,521 19,794 Household income $41,930 $59,042 $52,214 Average HH Vehicles 2.00 2.00 2.00 Average HH Size 2.40 2.70 2.60 Housing Median Home Value $121,402 $142,149 $123,686