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Net Lease

FedEx Ground

1700 Heartland Ave, Effingham, IL 62401

Listing Price: $6,877,116

Cap Rate
6.34%
Lot Size
6.90 acres
Year Built
2007
Rentable SF
38,777

Investment Overview

Marcus & Millichap has been exclusively retained by ownership to offer an investor the opportunity to purchase this build-to-suit FedEx Ground distribution center located in Effingham, Illinois. The subject property is located just off of Interstate 70, a major east-west Interstate Highway connecting St. Louis, Missouri routing through Interstate 40 to Indianapolis, Indiana. Additionally, it is located off of Interstate 57 which runs north to Chicago, Illinois and south to Sikeston, Missouri. The 2020 population within a 25-mile radius of the property was 79,320. The 38,777 square foot, fully modern distribution center is strategic in the FedEx Hub and Spoke network. FedEx has invested their own capital into a sort system located inside the facility. FedEx's original lease commenced on March 1, 2007 for a 10-year term. on November 1, 2012 FedEx expanded the building by 14,981 square feet and then extended the lease out for a new ten-year lease term. FedEx is currently expanding their parking area for truck and trailer parking. they are also adding one additional bathroom. Upon completion, the lease will then be extended for an additional five years. FedEx Ground has two five-year options to renew with five percent rental increases at the start of each option. FedEx will manage the property on a day-to-day basis meaning there is virtually no management involved. 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 facility is a strategic FedEx location and is a critical piece of the FedEx Ground system. Coupling their growing revenue with the overall credit (S&P BBB) signifies this asset to be a very strong, low risk investment.

Investment Highlights

  • Just Expanded FedEx Ground on a 5-Year Renewal Net Lease with 5-Years Remaining
  • 38,777-Square Foot Distribution Facility on 6.9 +/- Acres
  • Two Five-Year Options to Renew with Five Percent Rental Increase in Each Option
  • FedEx Corporation (FedEx Ground Parent) - Standard & Poor's BBB Rated
  • FedEx Ground's Revenue Up 11 Percent in Fiscal Year 2020

Exclusively Listed By

Broker of Record

  • Steven D. Weinstock

    First Vice President / Regional Manager / Designated Managing Broker

    (630) 570-2250

    License(s) IL: 471.011175

    Illinois

Listing Price: $6,877,116

Cap Rate
6.34%
Lot Size
6.90 acres
Year Built
2007
Rentable SF
38,777

Investment Highlights

  • Just Expanded FedEx Ground on a 5-Year Renewal Net Lease with 5-Years Remaining
  • 38,777-Square Foot Distribution Facility on 6.9 +/- Acres
  • Two Five-Year Options to Renew with Five Percent Rental Increase in Each Option
  • FedEx Corporation (FedEx Ground Parent) - Standard & Poor's BBB Rated
  • FedEx Ground's Revenue Up 11 Percent in Fiscal Year 2020

Investment Overview

Marcus & Millichap has been exclusively retained by ownership to offer an investor the opportunity to purchase this build-to-suit FedEx Ground distribution center located in Effingham, Illinois. The subject property is located just off of Interstate 70, a major east-west Interstate Highway connecting St. Louis, Missouri routing through Interstate 40 to Indianapolis, Indiana. Additionally, it is located off of Interstate 57 which runs north to Chicago, Illinois and south to Sikeston, Missouri. The 2020 population within a 25-mile radius of the property was 79,320. The 38,777 square foot, fully modern distribution center is strategic in the FedEx Hub and Spoke network. FedEx has invested their own capital into a sort system located inside the facility. FedEx's original lease commenced on March 1, 2007 for a 10-year term. on November 1, 2012 FedEx expanded the building by 14,981 square feet and then extended the lease out for a new ten-year lease term. FedEx is currently expanding their parking area for truck and trailer parking. they are also adding one additional bathroom. Upon completion, the lease will then be extended for an additional five years. FedEx Ground has two five-year options to renew with five percent rental increases at the start of each option. FedEx will manage the property on a day-to-day basis meaning there is virtually no management involved. 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 facility is a strategic FedEx location and is a critical piece of the FedEx Ground system. Coupling their growing revenue with the overall credit (S&P BBB) signifies this asset to be a very strong, low risk investment.

Exclusively Listed By

Broker of Record

  • Steven D. Weinstock

    First Vice President / Regional Manager / Designated Managing Broker

    (630) 570-2250

    License(s): IL: 471.011175

    Illinois

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