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INVESTMENT HIGHLIGHTS
Investment-Grade Credit - FedEx Corporation (NYSE: FDX) holds an investment-grade BBB/Stable credit rating via S&P and boasts a current market cap of approximately $68 billion. FedEx is the world’s largest commerce provider and has positioned itself to take full advantage of the explosion of e-commerce and the resultant business-to business and business-to-consumer shipments.
New Lease Renewal - The tenant has just signed a 5-year lease renewal with 5% rent increases every 2.5 years and has one remaining five-year extension option. This renewal highlights FedEx’s strong commitment to maintaining operations at this location, reinforcing the site’s strategic importance to their business.
Strategic Airport Location - The property sits in an ideal logistics location adjacent to the Topeka Regional Airport and the Forbes Industrial Park. The property is located in a strong logistics location with close proximity to I-75 and I-70. Other major national credit industrial tenants in close proximity include: Coca-Cola, LKQ, International Paper, Frito-Lay and Mars Chocolate North America to name few.
Long-Term Commitment - The property was a built-to-suit for the tenant, and later expanded to fit its customized needs for strategic growth within the market. This investment underscores the tenant’s strong commitment to this location.
Leasehold Depreciation - The leasehold interest allows an investor to take advantage of 100% depreciation of the investment. The leasehold owner retains the rights to the improvements under the ground lease for ± 34 years.
Strong Industrial Submarket Fundamentals - The West I-287 Corridor Submarket features outstanding fundamentals with a 3.2% vacancy rate on 9.7 million square feet with average annual rent growth of 5.7% over the last three years.
Construction Quality - The 92,277 SF distribution warehouse is pre-engineered steel and metal construction with 15-18’ clear height and 34 dock doors. The building was originally constructed as a build-to-suit for the tenant in 2008, and a 34k sf expansion took place in 2015.
