FEDEX GROUND Company’s FedEx Ground segment operates through FedEx Ground Package System ... or causes of action relating to this solicitation process or the marketing or

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I N D U S T R I A L

FEDEX GROUND

OFFERING MEMORANDUM

59 FRESA PARKWAY I BRIDGEPORT, WEST VIRGINIA

EXCLUSIVE LISTING AGENTS:ALEX HARROLDSenior Associate

DIRECT 1 310 919 5790MOBILE 1 310 977 [email protected] # 02009656 (CA)

GARY CHOUFVP & Senior Director


GILLIAN GREENFIELDBroker of Record

LIC # WV0026307 (WV)

BROKER OF RECORD

CONTENTINVESTMENT SUMMARY 5

TENANT OVERVIEW 8

PROPERTY SUMMARY 10

MARKET & LOCATION OVERVIEW 12

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I N D U S T R I A L

INVESTMENT SUMMARY

S E C T I O N

O N E

1

INVESTMENT SUMMARY

INVESTMENT HIGHLIGHTS

• Attractive Return – 9.00% CAP with 4 years remaining on the primary lease with

rental increases in the (2), Three (3) year options

• Expandable Facility – FedEx maintains an option to expand the facility by

6,420 SF. This allows the tenant to increase their capacity if needed in the

future to support increased demand

• Passive Lease – NN+ Lease with landlord only responsible for the

roof and structure.

• The facility is within a close vicinity of Interstate-79 – Primary

thoroughfare for Western Pennsylvania and West Virginia,

which is the only major highway linking Charleston, WV,

and Pittsburg, PA – home to the Headquarters of FedEx Ground

Package System, Inc. FedEx must maintain their presence here to serve the

surrounding area between West Virginia’s capital city and Pittsburg, PA.

• FedEx has established this location as a “hub” by having a FedEx Freight facility

adjacent to the FedEx Ground.

• Strong Tenant - FedEx Ground is the highest yielding FedEx Corp. service line and

has the largest connected network of industrial facilities in the country

| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 5


FEDEX GROUND 59 Fresa Parkway Bridgeport, WV 26330

List Price $2,800,000

Cap Rate - Current 9.00%

Price/SF $72.95

GLA ± 38,383 SF

Lot Size ± 7.50 Acres

Year Built 2006

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Primary $21,000 $252,000 $6.57 9.00%

Option 1 $22,050 $264,600 $6.89 9.45%

Option 2 $22,711.50 $272,538 $7.10 9.73%

TENANT SUMMARY

TenantFedEx Ground Package System, Inc

Square Feet ± 38,383 SF

Rent Commencement 10/27/2006

Lease Expiration 10/31/2021

Term Remaining 4 Years

Current Annual Rent $252,000

Type NN - Roof and Structure Only

Tax, Utilities & Insurance Tenant Responsible

Roof & Structure Landlord Responsible

Increases5% Increase in Option 1; 3% Increase in Option 2

Options Two, 3-Year Options

6 | FEDEX | PROPERTY OVERVIEW


TENANT OVERVIEW

FEDEX GROUND REVENUE (FY 2016)

Revenue (in millions) $16,574

Margin 13.70%

Operating Income (in millions) $2,276

Average Daily Volume 7,526

FEDEX CORPORATIONFedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. With annual revenues of $58 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.FedEx Ground is a leading North American provider of ground small-package delivery services, providing service to the U.S. and Canada. FedEx Home Delivery®, the industry’s first ground service dedicated to residential delivery, is available from FedEx Ground and provides Saturday delivery for no additional charge. FedEx SmartPost® is a ground service that specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages primarily using the U.S. Postal Service® for last mile delivery to residences. FedEx Ground business segment financial results include FedEx Supply Chain, one of the largest third-party logistics providers in North America.

FEDEX GROUNDThe Company’s FedEx Ground segment operates through FedEx Ground Package System, Inc. (FedEx Ground), which is a North American provider of small package ground delivery services. The segment provides day-certain service to any business address in the United States and Canada, as well as residential delivery to residences in the United States through its FedEx Home Delivery service. As of May 31, 2016, the FedEx Ground segment operated a multiple hub-and spoke sorting and distribution system consisting of 575 facilities, including 33 hubs, in the United States and Canada. To provide FedEx Home Delivery service and FedEx SmartPost Service, the FedEx Ground segment leverages its pickup operation and hub and line haul network. FedEx Ground provides shipment tracing and proof-of-delivery signature functionality through its Website, fedex.com.

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PROPERTY OVERVIEW

S E C T I O N

T W O

2



THE OFFERING

Address59 Fresa ParkwayBridgeport, WV 26330

APN 17-15-228-078.0003

Zoning I - Industrial

GLA ± 38,383 SF

Lot Size ± 7.50 Acres (326,700 SF)

SITE DESCRIPTION

Framing Steel

Lot Size ± 7.50 Acres

Year Built 2006

ExpansionOption to Expand Building by 6,420 SF

Parking Asphalt

Roof Standing Seam Metal

Clear Height ± 24’

Dock-high Doors 16

Drive-In Doors 8

CONSTRUCTION

MARKET & LOCATION OVERVIEW

S E C T I O N

T H R E E

3

LOCATION OVERVIEWThe city of Bridgeport, WV is strategically located in North Central West Virginia, two hours

north of Charleston (The Capital of West Virginia), and two hours of south of Pittsburgh, PA. The

city of Bridgeport is located at the intersection of US Route 50 east and west and Interstate

79 north and south. The cities location makes it convenient and a smart choice for new

businesses, small industries, and supply and retail businesses. Its recreational and business

opportunities are the reason Bridgeport has earned the tagline, “Opportunity lives here.”

In the last 5 years, the city has put $390 million dollars into the development of the

community and it has transformed the city into a thriving city for both business and its

residents. Major employers in Bridgeport include North Central West Virginia Regional

Airport, Meadowbrook Mall, Pratt & Whitney, Aurora Flight Services, Bombardier Service

America, Robert C. Byrd Technology Institute, and Fairmont State University.

PROPERTY DEMOGRAPHICS3-Mile 5-Mile 7-Mile

2017 Estimate 4,379 21,720 49,100

HOUSEHOLDS3-Mile 5-Mile 7-Mile

2017 Estimate 1,832 9,099 20,731

INCOME 3-Mile 5-Mile 7-Mile

2017 Est. Average Household Income

$53,643 $65,190 $64,999

2017 Est. Median Household Income

$38,197 $45,211 $44,352


National Oilwell Varco

Subject Property

NEIGHBORING INDUSTRIAL TENANTS


This Offering Memorandum contains select information pertaining to the business and affairs of the FedEx Ground located at 59 Fresa Parkway, Bridgeport, WV (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

The Offering Memorandum and its contents are confidential;

You will hold it and treat it in the strictest of confidence; and

You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY & DISCLAIMER STATEMENT

EXCLUSIVE LISTING AGENTS:

™

I N D U S T R I A L

ALEX HARROLDSenior Associate


GARY CHOUFVP & Senior Director


FEDEXGROUND

59 FRESA PARKWAY I BRIDGEPORT, WV

Documents

FEDEX GROUND Company’s FedEx Ground segment operates through FedEx Ground Package System ... or causes of action relating to this solicitation process or the marketing or