FedEx Ground - info.stanjohnsonco.com

4674 Westgate Pkwy | Dothan, AL 36303

Offering Memorandum

FedEx Ground

Subject Property

Strong Corporate Credit | New Lease Extension with 5% Rental Increase | 6+ Undeveloped Acres with Value-Add Potential

Stan Johnson Company3340 Peachtree Road NE | Suite 650Atlanta, GA 30326P: 404.823.6360stanjohnsonco.com

Offered Exclusively by Confidentiality and Restricted Use Agreement

This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

Jason W. Powell, CCIM Senior Director & Partner [email protected] P: 404.823.6754

Colin Couch Associate Director [email protected] P: 404.823.6376

Max Van Dresser Associate Director [email protected] P: 404.823.6377

David Marlett Senior Analyst [email protected] P: 404.823.6744

In Association with: Shan Gastineau Alabama Broker #000091061

POINT OF CONTACT

FedEx Ground • Dothan, AL 2

The OfferingStan Johnson Company, on behalf of ownership, is pleased to offer for sale to qualified investors the 100% fee simple interest in this FedEx Ground property located at 4674 Westgate Pkwy, Dothan, AL 36303 (the “property”).

FedEx has recently exercised its renewal option to extend the lease, and there are now 3.0 years remaining in the current term. The lease extension features a 5.0% rental increase in November 2022. This facility was a build-to-suit for FedEx Ground who has been operating here since 2008. The parcel also includes 6+ well-shaped acres directly adjacent to FedEx.

FedEx Ground is the most-profitable segment of FedEx Corporation (NYSE: FDX) and accounted for over $30 billion in revenues for FY21. FedEx Corporation holds an investment-grade BBB/Stable credit rating via Standard & Poor’s and boasts a market cap in excess of $60 billion. FedEx has positioned itself to take full advantage of the explosion of e-commerce and the resultant business-to-business and business-to-consumer shipments.

Property Summary Location 4674 Westgate Pkwy, Dothan, AL 36303

Sq. Footage 42,614

Acreage 12.38

Term Remaining 3.0 Years

Lease Type NN

Year Built 2008

Ownership Interest Fee Simple

Offering Summary NOI $365,030

Offering Price $4,500,000

Tenant FedEx Ground Package System, Inc.

Parent Co. FedEx Corporation (S&P: BBB | NYSE: FDX)

Property Type Industrial | Distribution/Warehouse

Demographics1-Mile 3-Mile 5-Mile

2021 Population 726 15,792 48,565

2026 Population 727 15,940 49,181

2021 Average HHI $73,073 $49,598 $60,997

Subject Property

Avg. Cap Rate: 8.38%

Cap Rate:8.11%

Offering Price: $4,500,000


Property Highlights

Investment HighlightsStrong Corporate Credit - FedEx Ground is the most-profitable segment of FedEx Corporation (NYSE: FDX) and accounted for over $30 billion in revenues for FY21. FedEx Corporation holds an investment-grade BBB/Stable credit rating via Standard & Poor’s and boasts a market cap in excess of $60 billion.

New Lease Extension - FedEx has recently exercised its renewal option to extend the lease by an additional two (2) years, a strong reaffirmation of the tenant’s commitment to this location.

Rental Increase - FedEx’s lease extension features a 5.0% rental increase in November 2022.

6+ Undeveloped Acres - The parcel includes 6+ well-shaped undeveloped acres that are not leased to FedEx, located directly adjacent to the facility. This undeveloped land offers significant value-add potential and the capacity to expand by up to an additional 60,000 square feet.

Long-Term Occupancy at Build-to-Suit Facility - This facility was a build-to-suit for FedEx Ground who has been operating here since 2008. FedEx has extended the lease on three (3) separate occasions.

Passive Lease Structure - FedEx operates under a passive double-net lease structure in which the tenant is responsible for all operating expenses related to the property including taxes, insurance, and common area maintenance.

Strong Submarket Performance - Per Costar Analytics, the Dothan industrial submarket has boasted 5%+ average annual rent growth over the last three years, and has featured positive 12-month net absorption for 10 of the last 12 quarters.

Essential Logistics Asset - The nature of FedEx Ground’s logistics operations makes this asset particularly insulated from e-commerce and recession. FedEx has positioned itself to take full advantage of the explosion of e-commerce and the resultant business-to-business and business-to-consumer shipments.

STRONG CORPORATE CREDITFDXG: $30B in Revenues | FedEx: BBB (S&P)

NEW LEASE EXTENSIONStrong Tenant Commitment

PASSIVE LEASE STRUCTUREMinimal Landlord Responsibilities

6+ UNDEVELOPED ACRESWell-Shaped Tract with Value-Add Potential

5% RENTAL INCREASEIn November 2022


Cap Rate:8.11%



Lease AbstractTenant FedEx Ground Package System, Inc.

Address 4674 Westgate Pkwy, Dothan, AL 36303

Sq. Footage 42,614

Remaining Term 3.0 Years

Expiration 10/31/2024

Annual Rent $365,030

Rent PSF $8.57

Rental Increases 5.0% in November 2022

Renewal Options None

Expenses | LL Resp. NN | Roof and Structure

Tenant ResponsibilitiesTenant responsible for all operating expenses including taxes, insurance, common area maintenance, HVAC, landscaping and parking.

Parcel ID 38 09 01 01 1 000 001.006

Acreage 12.38

Ownership Interest Fee Simple

Zoning L-I Light Industrial

Year Built 2008

Expansion Capacity Yes, ± 60,000 SF

Clear Height 18’

Doors 7 Drive-Ins | 12 8’x9’ Dock-Highs

Roof Metal Corrugate / Steel Trusses

Exterior Walls Metal Corrugate

Parking ± 100 Surface | 2.4 per 1,000 SF

Access One (1) Ingress/Egress via Westgate Pkwy

Property Summary

Rent Schedule

Term Period Annual Rent Rent PSF Increase

Primary

11/1/2021 - 10/31/2022 $365,030 $8.57 --

11/1/2022 - 10/31/2023 $383,280 $8.99 5.0%

11/1/2023 - 10/31/2024 $383,280 $8.99 --

Subject Property


Cap Rate:8.11%



Headland Ave± 4,540 VPD

Ross Clark Circle± 29,990 VPD

Westgate Pkwy± 10,177 VPD

Reeves St± 18,023 VPD

Dothan High School

±1,155 students

Meadow Ridge Apartments

Eagle Ridge Apartments

Summer Wood Apartment Homes

Industrial Corridor

Coffman Coffman InternationalInternationalThe Parts House The Parts House Twitchell CorpTwitchell CorpColeman Worldwide Coleman Worldwide Moving Moving Jackson’s Trophies & Jackson’s Trophies & Awards Awards Synergy Equipment Synergy Equipment Townsend Building Townsend Building Supply Supply

Parks Truck Repair Parks Truck Repair Schwan Food Schwan Food Cole Signs Cole Signs ID Associates ID Associates Dothan WarehouseDothan WarehouseA+ ApplianceA+ ApplianceSouthern Lumber Southern Lumber SupplySupplySRM ConcreteSRM ConcreteXPO LogisticsXPO Logistics

Retail/Industrial Corridor

House of CabinetreyHouse of CabinetreyPanhandle 2.0 Panhandle 2.0 Lafayete Auto-AirLafayete Auto-AirRyder Truck Ryder Truck Maintenance ShopMaintenance ShopCrossroads Building Crossroads Building SupplySupplyUsed Tire Store Used Tire Store Mcgriff Tire Mcgriff Tire AAA Cooper AAA Cooper TransportationTransportation

Western Star Western Star FleetPrideFleetPrideCapitol MaterialsCapitol MaterialsDothan Hardware & Dothan Hardware & Supply CoSupply CoRoadMart Inc RoadMart Inc Whatley Supply Co Whatley Supply Co Techway AutomotiveTechway AutomotiveIrby Electric Irby Electric Hudson Office Hudson Office Supply Company Supply Company

Gateway Tire Gateway Tire SoutheastSoutheast

Dunbarton Dunbarton CorporationCorporation

Covenant Covenant SteelSteel

Dothan Outdoor Dothan Outdoor Equipment Equipment

Keystone Keystone AutomotiveAutomotive

Courtney’s Mobile Courtney’s Mobile Home SuppliesHome Supplies

Techway Techway AutomotiveAutomotive

SunSouthSunSouth

Action Action MarineMarine

Wise Wise ForkliftForklift

Alabama Alabama Electric CoElectric Co

Auto Auto SmartSmart

Alabama Alabama RockRock

Ready Mix Ready Mix USAUSA Cypress & Cypress &

Myrtle Hair CoMyrtle Hair Co

ABC FreightABC Freight

MidSouth MidSouth Pavings, IncPavings, Inc

COUCH READY COUCH READY USAUSA

Coffman Coffman InternationalInternational

APECAPEC

Downtown Dothan ± 4.2 Miles from Subject Property


N

Westgate Pkwy ± 10,177 VPD

6+Undeveloped Acres

Dothan High School

±1,155 students


SE

FedEx Corporation (NYSE: FDX), the world’s largest commerce provider, is comprised of three major service lines. The consolidated company offers a broad range of services and solutions which link 99% of the world’s GDP. Through fiscal

2021, FedEx Corporation generated $84 billion in revenues, $5.2 billion net income, and currently boasts a market cap in excess of $73 billion. The company currently holds investment grade ratings by both Standard & Poor’s and Moody’s Investor Services with BBB and Baa1 ratings, respectively.

FedEx Express, the original core business, provides next day air service within the United States and time-definite worldwide service. FedEx Express operates one of the largest civil aircraft fleets in the world and carries more freight than any other airline; offering supply chain solutions including critical inventory logistics, transportation management, temperature-controlled transportation services, and international trade advisory services. 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 90 percent of the world’s gross domestic product within 1 to 3 business days.

FedEx Freight offers less-than-truckload and freight-shipping services. Offering Priority services for when speed is critical and Economy services for when time can be exchanged for savings, the increased use of rail for shipments for the latter has lowered costs while increasing reliability for customers. Operated in conjunction, this segment operates approximately 30,000 vehicles from a network of 373 service centers and has approximately 44,000 employees.

FedEx Ground provides low-cost, day-certain service to every business address in the United States and Canada, as well as residential delivery to nearly 100% of U.S. residences through its FedEx Home Delivery service. FedEx Ground operates a multiple hub-and-spoke sorting and distribution system consisting of 591 facilities, including 39 hubs, in the United States and Canada. The subsidiary’s 154,000 team members conduct their operations primarily with over 45,000 owner-operated vehicles and approximately 48,000 company-owned trailers.

MAY-21 MAY-20 MAY-19

Revenue (in millions) $30,496 $22,733 $20,522

Margin 12.8% 8.9% 12.9%

Operating Income (in millions) $3,913 $2,014 $2,640



Margin 6.7% 2.8% 5.7%

Operating Income (in millions) $2,810 $996 $2,123



Margin 12.8% 8.2% 8.1%

Operating Income (in millions) $1,005 $580 $615

679 AIRCRAFT

650 AIRPORTS SERVED WORLDWIDE

14M SHIPMENTSEACH BUSINESS DAY

500K TEAM MEMBERS WORLDWIDE

220 COUNTRIES & TERRITORIES

$84B FY21 ANNUAL REVENUE

E-COMMERCE SOLUTIONS

BUSINESS SERVICES

MEMPHIS, TNWORLDWIDE HEADQUARTERS

Tenant Overview


Location Overview | Dothan, ALDothan is a city located in Dale, Henry and Houston counties in the southeast corner of Alabama. Home to more than 65,496 residents, the city offers affordable housing, low property taxes and a wide variety of products and services that include health care, education, shopping and cultural entertainment.

Dothan is conveniently located next to U.S. Highway 231 and 431 running north/south; U.S. Highway 84 running east/west; and Interstate 10 located 35 miles south. It is located approximately 20 miles from Florida and Georgia borders. Travel destinations like Mobile, Montgomery and Birmingham, Alabama; Atlanta and Albany, Georgia; and Tallahassee and Panama City, Florida, are accessible by highway, air, rail or water.

Transportation by rail or water is available in the Dothan area with rail services provided by CXX, Gulf & Ohio and Bayline Railroad and the nine-foot channel in the Chattahoochee River that offers access in the Intracoastal Waterway.

Located strategically in the southeast corner of Alabama, Dothan Regional Airport is located approximately 7 miles northwest of Dothan’s central business district. It is situated in Dale County, but within the city limits of

Dothan, and is easily accessible for almost 500,000 people in Alabama, Georgia and Florida. Dothan Regional Airport includes 1,200 acres of land, an 8,500’ all weather runway, a 5,000’ secondary runway, and a 27,000-square-foot terminal building. There are additional buildings on the airfield occupied by Commercial Jet (MRO), FlightSafety International and two Fixed-Base Operators: Aero-One and Flightline of Dothan.

Dothan is the home of two hospitals. Southeast Alabama Medical Center is the city’s only public hospital, and is located on the city’s southeastern side. Flowers Hospital is a private hospital situated on Dothan’s western side.

Dothan has a diverse economy. Agriculture is the largest industry, though retail sales and restaurants have experienced a rapid growth in recent years. Although peanut production remains a mainstay of the agricultural sector, cotton is gaining in importance.

The people of Dothan enjoy one of the lowest costs of living in the country, mostly due to the large dependence on city revenue from the sales tax. Dothan receives hundreds of thousands of visitors every year from the northern U.S. who pass through the city on their way to visit the Florida beaches. This tourism is a staple of the local economy.

Downtown Dothan, AL


N

1 mile

3 miles

5 miles Dothan

Population 1 mile 3 miles 5 miles

2021 Population 726 15,792 48,565

2026 Population 727 15,940 49,181

2010-2021 Annual Rate 0.05% 0.18% 0.24%

2021-2026 Annual Rate 0.03% 0.19% 0.25%

Households 1 mile 3 miles 5 miles

2021 Total Households 301 6,620 19,678

2026 Total Households 302 6,678 19,923

2010-2021 Annual Rate 0.06% 0.16% 0.22%

2021-2026 Annual Rate 0.07% 0.17% 0.25%

Household Income 1 mile 3 miles 5 miles

2021 Median Household Income $51,448 $32,990 $40,144

2021 Average Household Income $73,073 $49,598 $60,997

48Kpopulation

(5 miles)

$73Kavg. HH inc.

(1 mile)

Demographics


The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

going beyond

Stan Johnson Company3340 Peachtree Road NE | Suite 650Atlanta, GA 30326P: 404.823.6360

stanjohnsonco.com

Jason W. Powell, CCIMSenior Director & [email protected]: 404.823.6754

Colin CouchAssociate [email protected]: 404.823.6376

Max Van DresserAssociate [email protected]: 404.823.6377

David MarlettSenior [email protected]: 404.823.6744

In Association with: Shan Gastineau Alabama Broker #000091061

POINT OF CONTACT

Offered Exclusively by

Documents

FedEx Ground - info.stanjohnsonco.com