FedEx Ground – Recent 10 YR Extension

Agent Info

Deno Bistolarides

248.702.0288
denob@encorereis.com

Brandon Hanna

248.702.0290
bhanna@encorereis.com

Ryan Vinco

248.702.0299
ryan@encorereis.com

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Offering Information

2502 North 30th Street
Escanaba, MI 49829

  • Price: $5,597,000
  • Cap. Rate: 6.75%
  • NOI: $377,804
  • Building Size: 43,805SF
  • Lot Size: 6.51 AC

Investment Highlights

  • 10-year lease extension effective October 1, 2016, and recent expansion solidify long-term tenancy, a win-win for both landlord and tenant
  • 43,805 square feet building located on 6.5 acres of land with an option to acquire additional land for second expansion
  • Based on the location's ever increasing absorption of market share and the realities of the new economy, a second expansion is reasonably foreseeable
  • The optioned land of an additional 5 acres would, once exercised, make it feasible to more than double the size of the existing building
  • Facility expansions are typically an owner function with extended lease terms and new rent structures negotiated as between landlord and tenant
  • Modified NNN lease--minimal landlord responsibilities
  • Parent company has an investment grade S&P credit rating of "BBB/Stable"
  • FedEx Ground is the largest provider of small package ground delivery services
  • Located in Michigan's Upper Peninsula along Lake Michigan, the property is 450 miles from Detroit and only 60 miles from the Wisconsin border
  • Escanaba is a port city in Delta County and the third largest city in the Upper Peninsula
  • Excellent 1031 exchange replacement property