Northmarq Commercial, on behalf of ownership as its exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in the FedEx Ground distribution facility located at 3201 Columbia Rd in Richfield (Cleveland MSA), OH (the "Property"). The Property, encompassing 233,184 square feet on 32.45 acres, boasts excellent distribution access within Northeast Ohio market (equidistant drive-time to both Cleveland and Akon) due to its direct proximity to the interchange of Interstates 77 & 80. Further, the local industrial submarket benefits from a healthy 97.4% occupancy and a market rent of $6.63/SF.
The Property is 100% leased by FedEx Ground Package System, Inc. (the "Tenant") with the lease fully guaranteed by FedEx Corp. (the "Guarantor"), the publicly traded investment-grade parent company of the Tenant (S&P: BBB/Stable). Since taking occupancy in 2001 as a build-to-suit construction, FedEx has since recommitted to the Property through 4 subsequent extensions - including an expansion of the building in 2010 and the construction of a standalone security building ($2.7M) as part of its most recent extension in 2019 - as well as significant capital investments ($3.3M) to its automatic sorting system and conveyors over the last 5 years.
The Property is subject to a passive net lease with Landlord obligations limited to capital repairs and replacements solely of the roof and structure. The Property is offered with 6.7 years of remaining lease term, ensuring credit-backed income through September 2031 and two, five-year extension options.