Investment Overview

Marcus & Millichap has been retained by ownership to offer exclusively to the investment market this 35,707 square foot, build-to-suit FedEx Express distribution center in Miamisburg, Ohio. Situated in suburban Dayton, and originally developed in 1986, this is an excellent industrial facility on 2.64-acre parcel just minutes from the I-75 freeway. A 10-year lease extension was executed in late 2018 and has the term that runs through October 2028. Important to the investment basis on the buy-in, is that with an increase coming in the fall, the rent is at just $6.03 per square foot, nicely below the submarket rent of $6.84 per square foot (CoStar). Two five-year options remain for FedEx to stay in a key facility for distribution to this densely populated area. Dayton is sizable market are with more than 810,000 people residing in a large area extending out from the confluence of two major highways, I-75 and I-70. For logistics providers this is key location for shipping north and south on I-75, Detroit to Tampa, and east and west, to Columbus and Indianapolis on I-70. An enormous economic driver for the area is the Wright-Patterson Air Force Base. Wright-Patterson Air Force Base is a central research and development arm of the U.S. Air Force, with over 35,000 employees, including military, civilian and contractors, Wright-Patterson is the largest single site employer in the state of Ohio with an economic impact of $4.2 billion per year. Located in the South Dayton industrial submarket of the larger Dayton market, this area of nearly 12,450,000 square feet of product is strong fundamentally with only a 1.8% vacancy and rental growth over the past year at 4.4%. Logistics and distribution companies attracted to the area are a significant demand driver for this industrial corridor due to the I-75 & I-70 interchange and critical intermodal facilities. FedEx is an exceptional global company and tenant, with Fiscal 2023 revenues of over $90.16 Billion, and an investment grade S&P rating of “BBB” stable. The company has more than 5,000 facilities around the world and is the dominant delivery provider in the world. FedEx manages the property on a day-to-day basis so there is virtually no management involved and minimum landlord responsibility. All annual operating costs are the tenant’s responsibility while the landlord is obligated to maintain underground utilities, mechanical and utility systems, replacement of the roof and all matters of the structural integrity of the property. This is a premier opportunity for an investor to acquire a strategically located distribution property leased to FedEx Express. As is the standard procedure for FedEx, the site was originally pinpointed by their facility location model which combines package delivery patterns with many occupational aspects, such as fuel usage, truck mileage and wear and tear, driver road time restrictions and more.