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Net Lease

FedEx Ground

204 Granby St, Hertford, NC 27944

Listing Price: $8,057,000

Cap Rate
6.05%
Lot Size
9.25 acres
Year Built
2009
Rentable SF
47,854

Investment Overview

Marcus & Millichap has been retained by ownership to offer exclusively to the investment market this build-to-suit FedEx Ground distribution center in Hertford, North Carolina. Hertford is located in the Northeast part of the state sixty miles south of Norfolk, Virginia. This 47,854 square foot distribution center is located on a large 9.25 acre parcel just off of Route 17, the primary connecting road to Elizabeth City and up into the major market of Norfolk. This is a premier opportunity for an investor to acquire a strategically located distribution property leased to FedEx Ground that serves this portion of the state near and along Albemarle Sound and the barrier islands of Kitty Hawk and Nags Head. The site selection by FedEx considers the regional package volume coupled with expenses such as fuel costs, truck mileage, and driver road time among other factors. FedEx has invested a large amount of capital into a semi-automated sort system within the facility as well. This FedEx lease commenced on December 28, 2009 with an original 10-year term, with an extension exercised it now expires on September 30, 2025. FedEx Ground has two five-year options to renew with a 10 percent increase in the first option and a 5 percent increase in the second. FedEx will manage 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, roof and all matters of the structural integrity of the property. This is a strategic FedEx Overnight Transfer Point Hub location and is a critical piece of the FedEx Ground network system. Couple their growing revenue with the overall credit and this asset becomes a very strong, low risk investment.

Investment Highlights

  • Build-to-Suit for FedEx Ground on a 10-Year Net Lease with 4-Years Remaining
  • 47,854-Square Foot Distribution Facility Built in 2009 & Expanded in 2015 on 9.25 +/- Acres
  • Two Five-Year Options to Renew with Ten Percent Rental Increase in First & Five Percent in Second 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

  • Benjamin Yelm

    Regional Manager

    (843) 952-2222

    License(s) NC: 303785

    North Carolina

Financing By

Listing Price: $8,057,000

Cap Rate
6.05%
Lot Size
9.25 acres
Year Built
2009
Rentable SF
47,854

Investment Highlights

  • Build-to-Suit for FedEx Ground on a 10-Year Net Lease with 4-Years Remaining
  • 47,854-Square Foot Distribution Facility Built in 2009 & Expanded in 2015 on 9.25 +/- Acres
  • Two Five-Year Options to Renew with Ten Percent Rental Increase in First & Five Percent in Second 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 retained by ownership to offer exclusively to the investment market this build-to-suit FedEx Ground distribution center in Hertford, North Carolina. Hertford is located in the Northeast part of the state sixty miles south of Norfolk, Virginia. This 47,854 square foot distribution center is located on a large 9.25 acre parcel just off of Route 17, the primary connecting road to Elizabeth City and up into the major market of Norfolk. This is a premier opportunity for an investor to acquire a strategically located distribution property leased to FedEx Ground that serves this portion of the state near and along Albemarle Sound and the barrier islands of Kitty Hawk and Nags Head. The site selection by FedEx considers the regional package volume coupled with expenses such as fuel costs, truck mileage, and driver road time among other factors. FedEx has invested a large amount of capital into a semi-automated sort system within the facility as well. This FedEx lease commenced on December 28, 2009 with an original 10-year term, with an extension exercised it now expires on September 30, 2025. FedEx Ground has two five-year options to renew with a 10 percent increase in the first option and a 5 percent increase in the second. FedEx will manage 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, roof and all matters of the structural integrity of the property. This is a strategic FedEx Overnight Transfer Point Hub location and is a critical piece of the FedEx Ground network system. Couple their growing revenue with the overall credit and this asset becomes a very strong, low risk investment.

Exclusively Listed By

Broker of Record

  • Benjamin Yelm

    Regional Manager

    (843) 952-2222

    License(s): NC: 303785

    North Carolina

Financing By

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