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DOUGLAS LONGYEAR, SIOR
+1 415 677 0458
CA Lic #00829911
BROOKS PEDDER, SIOR
+1 925 627 2480
CA Lic#00902154
SCOTT BERTRAND
+1 925 627 2885
CA Lic#01859508
E X E C U T I V E S U M M A R Y
FEDEX EXPRESS CORPORATION1 1 5 C E N T E R A V E , P A C H E C O , C A
680
SUBJECT PROPERTY
Cushman & Wakefield’s Net Lease Group is pleased to offer for sale the 70,610 sq. ft. FedEx Express Distribution Building on a 3.659 acre site located at 115 Center Avenue, Pacheco, California, which is a small unincorporated area between Concord and Martinez in North Contra Costa County.
$17,100,000 Price
New 16 Year Lease Term
Multiple Rent Increases
Rent at Market Rate
This offering is a rare opportunity to acquire an industrial property located in the dynamic Bay Area and leased long term at a market rent to Federal Express Corporation.
EXECUTIVE SUMMARYFedEx Property History
• FedEx BTS constructed in 1985• FedEx requested a building expansion in 1990
FedEx Lease• Favorable Maintenance clause
FedEx Express Credit • World’s largest express transportation
company• FedEx Express has its own S&P BBB bond rating• Largest subsidiary of FedEx Corporation (NYSE:
FDX)
eCommerce• eCommerce’s share of total retail sales in the
U.S. is approximately 9%• eCommerce’s share is expected to grow to
25%-30%• FedEx is one of the leading shippers of Internet
related purchases
Real Estate Advantages• Easy access to I-680• Infill location close to high income residential,
industrial and commercial areas• Rare large building in local submarket ideal for
“last mile eCommerce” use.
Fundamentals• FedEx Express paid for an expensive material
handling system.• The FedEx rent is at current market rent and
below a build-to-suit rent
KEY INVESTMENT CONSIDERATIONS
SUBJECT PROPERTY
FEDEX EXPRESS CORPORATION
The Tenant’s Parent Company - FedEx Corporation
FedEx Corporation, a Delaware corporation (NYSE: FDX), provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company offers integrated business solutions through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. FedEx has more than 425,000 employees and is consistently ranked among the world's most admired and trusted employers.
FedEx Corporation does not guaranty the lease.
Total Assets (FY 2018)
$53 BillionShareholder’s Equity
$19 BillionRevenues
$65 BillionNet Income
$4.57 BillionS&P Bond Rating
BBB
The Tenant: Federal Express Corporation
• The world’s largest express transportation company.• FedEx Express delivers approximately 6 million shipments
and 29 million pounds of freight each business day.
Federal Express Corporation, a Delaware corporation (“FedEx Express”), invented express transportation and remains the industry’s global leader, providing rapid, reliable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 99 percent of the world’s gross domestic product. FedEx Express has unmatched air route authorities, transportation infrastructure and leading-edge information technologies.
Revenues (FY 2018)
$36 Billion Operating Income
$2.10 BillionFedEx Express Fleet
390 Jets285 Airplanes87,800 Trucks
S&P Bond Rating
BBB
238
237
4
33
120
4
26
88
99
1 92
84
84
4
24
4
37
116
12
85
82
87
82
17
99
120
132
99
33
165
29121
113
113
160
84
99
16
99
88
17
152
128
128
116
12
12
12
1
5
5
5
5
5
5
5
80
80
80
80
80
280
280
280
580
580580
580
680
680
680
680
780
880
880
880
505
505
205
50
50
101
101
101
101
101
101
101
LIVERMORE
MODESTO
BRENTWOOD
MANTECA
CONCORDPLEASANT
HILL
EMERYVILLE
EL CERRITOLARKSPUR
MILL VALLEY
SAUSALITO
DALYCITY
SANMATEO FOSTER
CITY
SOUTHSAN
FRANCISCO
SAN PABLO
HERCULES
SAN LEANDRO
DANVELLE
DUBLIN
PLEASANTON
SARATOGA
CUPERTINO
MILPITAS
LATHROP
DISCOVERY BAY
RIO VISTA
LODI
SUNOL
NEWARK
UNION CITY
REDWOOD CITY
LOSALTOSHILLS
SANTACLARA
MENLO PARK
ALAMO
ALAMEDA
CASTROVALLEY
BAY POINT PITTSBURG
ELK GROVE
FAIRFIELD
VACAVILLE
DAVIS
PETALUMA
NOVATO
BENICIA
VALLEJO
AMERICAN CANYON
MARTINEZ
ORINDALAFAYETTE
MORAGA
ROSEVILLE
CITRUS HEIGHTS
RANCHOCORDOVA
FOLSOMEL DORADO
HILLS
THORNTON
DIXON
WOODLAND
MARE ISLAND
SEARSPOINT
SONOMA
BIG BEND
FREMONT
SUNNYVALE
PALOALTO
MOUNTAINVIEW
OAKLANDSAN
FRANCISCO
WALNUT CREEK
SAN RAMON
RICHMONDSAN RAFAEL
BERKELEY
HAYWARD
ANTIOCHOAKLEY
TRACY
STOCKTON
SACRAMENTO
SAN JOSE
PACIFICOCEAN
SANFRANCISCO
BAY
SUISUNBAYSAN
PABLOBAY
NAPA
SANTACRUZ
2
3
5
12
8
1
4
6
7
9
11
10
TERMINAL SQ. FT.
115 Center AvenuePacheco, CA 94533 70,610
1. 1637 Francisco Boulevard EastSan Rafael, CA 94901 28,000
2. 1875 Main StreetSan Francisco, CA 94124 108,793
3. 900 Gateway BoulevardSouth San Francisco, CA 94080 106,057
4. 3750 Haven AvenueMenlo Park, CA 94025 69,500
5. 1286 Lawrence Station RoadSunnyvale, CA 94089 50,791
6. 710 Dado StreetSan Jose, CA 95131 106,057
7. 1600 3rd StreetEmeryville, CA 94608 37,500
8. 9190 Edes AvenueOakland, CA 94603 232,068
9. 8455 Pardee DriveOakland, CA 94621 33,411
10. 7275 Johnson DrivePleasanton, CA 94588 98,030
11. 11140 Sun Center DriveRancho Cordova, CA 95670 43,000
12. 935 Performance DriveStockton, CA 95206 60,710
FEDEX EXPRESS NETWORK MAP
HEADER
FedEx Express | Concord, CA | vCENTER AVENUE
7 0 , 6 1 0 ± S F
SITE PLAN
HEADER
FedEx Express | Concord, CA | viFedEx Express | Concord, CA | 13
680
680
PACHECO
PLEASANT HILL
LAFAYETTE
MORAGA ORINDA
MARTINEZ
CENTER AVENUE
CONCORD AVENUE
WALNUT CREEKALAMO
SAN JOSE
SW
BUCHANAN FIELD AIRPORT (CONCORD)
HEADER
FedEx Express | Concord, CA | viiFedEx Express | Concord, CA | 15
BUCHANAN FIELD AIRPORT (CONCORD)
PACHECO
SHELL REFINERY
VALLERO REFINERY
BENICIA INDUSTRIAL PARK
MARTINEZ
BENICIA
MARE ISLANDVALLEJO
CONCORD
PITTSBURGANTIOCH
4
680
680
680780
CENTER AVENUE
CONTRA COSTA BOULEVARD
CONCORD BOULEVARD
CHILPANCINGO PARKWAY
PACHECO BO
ULE
VA
RD
NW
FREEWAY ACCESS POINTS
FREEWAY ACCESS POINT
FREEWAY ACCESS POINT
PITTSBURGANTIOCH
FAIRFIELD VACAVILLE
SACRAMENTO
HEADER
FedEx Express | Concord, CA | viiiFedEx Express | Concord, CA | 17
4
4
242
680
BUCHANAN FIELD AIRPORT (CONCORD)
HONKER BAY PITTSBURGANTIOCH
BAY POINT
CONCORD
PACHECO
SUISUN BAY
NORTH CONCORD INDUSTRIAL PARK
CENTER A
VENUE
NE
FedEx Express | Concord, CA | 17