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OFFERING MEMORANDUM
I N D U S T R I A L
FEDEX GROUND - 883 INDUSTRIAL PARK RD I LITTLETON, NH
ALEX HARROLD
EXCLUSIVELY LISTED BY:
GARY CHOUAssociate DIRECT 1 310 919 5790MOBILE 1 310 977 [email protected] # 02009656 (CA)
FVP & Senior DirectorDIRECT 1 310 919 5827MOBILE 1 714 928 [email protected] # 01911222 (CA)
CHAD KURZ JOHNNY DUNNSVP & National Director DIRECT 1 214 692 2927MOBILE 1 562 480 [email protected] # 01911198 (CA)
Associate DIRECT 1 214 682 2289MOBILE 1 817 372 [email protected] # 677506 (TX)
Andrew CallahanBroker of RecordLicense # 069544
CONTENTSINVESTMENT SUMMARY 6
TENANT OVERVIEW 10
PROPERTY OVERVIEW 14
MARKET & LOCATION OVERVIEW 18
INVESTMENT SUMMARY
S E C T I O N
O N E
1
INVESTMENT SUMMARY
INVESTMENT HIGHLIGHTS
Significant Tenant Credit
• FedEx Ground is the highest yielding FedEx Corp. service line
• FedEx Ground continues to increase its market share and delivers faster to more U.S. locations than its competitors
• FedEx Ground has the largest connected network of industrial facilities in the country
Commitment to location
• Built to suit for FedEx Ground
• In 2013, the building underwent $1.5 million expansion
• Expansion extended lease 10 additional years
• Additional room for expansion within the 21 acres of land
6 | FEDEX | INVESTMENT SUMMARY
Essential Location
• Only FedEx Ground Facility serving Northern New Hampshire
• FedEx must maintain a presence in the area to serve the surrounding area
Investment Grade Parent
• In Fiscal Year 2016, FedEx Corp Revenue exceeded $50 billion
• Standard & Poor’s rating BBB
• 6% Year over Year sales - $14 billion net worth
E-Commerce Tenant
• Continued expansion to match the predicted increase in e-commerce
• One of the most profitable e-commerce companies in the world
Booming Industrial Park
• Over 380+ acres dedicated to commerce
• 17 businesses with over 1,200 employees
• Longstanding local companies, like Littleton Coin Company and BURNDY
Lease Details
• NN Lease - Only Roof and Structure
• Two (2), Five year options to renew
| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 7
CUMULATIVE RETURN ON INVESTMENT
60%
40%
0%
80%
20%
100%
120%
140%
160%
17161 2 3 4 5 6 7 8 9 10 11 12 13 14 15
FEDEX GROUND 883 Industrial Park Rd Littleton, NH 03561
List Price $7,392,000
Cap Rate - Current 7.52%
GLA ± 51,620 SF
Lot Size ± 21 Acres
Year Built/Year Expanded 2008 / 2013
7.52% 15.04%22.56%
30.08%37.60%
45.12%52.64%
60.16%67.68%
75.20%82.72% 90.24%
97.76%105.28%
112.80%120.32%
127.84%
Annualized Operating DataAnnual Rent Cap Rate Increase
Current - 2023 $555,601 7.52%
Option 1 $611,161 8.26% 10.00%
Option 2 $641,719 8.68% 5.00%
TENANT OVERVIEW
S E C T I O N
T W O
2
10 | FEDEX | INVESTMENT SUMMARY
TENANT SUMMARY
Tenant FedEx Ground Package System, Inc.
Square Feet ± 51,620 SF
Rent Commencement October 24, 2008
Lease Expiration September 30, 2023
Term Remaining ± 6.25 Years
Current Annual Rent $555,601
Options Two (2), Five (5) Years
Increases 10% in first and 5% in second
Type NN - Only Roof and Structure
Roof & Structure Landlord Responsible
Taxes, Insurance, Utilities Tenant Responsible
| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 11
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 smallpackageground 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.
QUARTERLY OPERATING INCOME
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PROPERTY OVERVIEW
S E C T I O N
T H R E E
3
14 | FEDEX | PROPERTY OVERVIEW
PROPERTY OVERVIEW
Address 883 Industrial Park RdLittleton, NH 03651
APN 91-58-0
Zoning I - Industrial
GLA ± 51,620 SF
Lot Size ± 21 Acres
SITE DESCRIPTION
Framing Steel and Insulated Panels
Lot Size ± 21 Acres
Year Built 2008
Year Expanded 2013
Parking Asphalt
Roof Standing Seam Metal
Clear Height 18’ - 22’
Dock-High Doors 12
Drive-In Doors 15
Trailer Parking 12
52’ Trailer Parking 2
Parking 102 Surface Spaces
Parking Ratio 1.98 : 1,00 SF
CONSTRUCTION
| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 15
MARKET & LOCATION OVERVIEW
S E C T I O N
F O U R
4
LOCATION OVERVIEW
18 | FEDEX | MARKET AND LOCATION OVERVIEW
Littleton is a vibrant community located nestled in the White Mountains near the Vermont Border. It has become a center for business, shopping, medical care, education and services for New Hampshire’s North County. This picturesque New England gem offers something for everyone - fine dining and art galleries, unique shops and historic buildings, and a range of outdoor activities for all seasons. Most recently, it has take pride in being named one of the Best Towns in USA by Outside Magazine. Littleton is located in Grafton County and is part of the Claremont-Lebanon, NH-VT MSA.
Just off I-93, at exit 41, the pretty town of Littleton straddles the Ammon-oosuc River, close to all that this region offers. The center or LIttleton is accessible from three exits of Interstate 93, and a fourth exit serves the western end of town near the Vermont border.
Companies in LIttleton have been very successful which is due to its dedicated work force. Littleton’s labor force comes from the surrounding communities in both New Hampshire and Vermont. Littleton has some of the lowest utility rates in New England, a busy attractive main street, and an active economic development task force.
Littleton Industrial ParkThe Littleton Industrial Park has dedicated 380+ acres to commerce. The Littleton Industrial Park continues to grow and currently has over 17 business with over 1,200 people. Included in the Industrial Park are local companies with international reach - Littleton Coin Company, BURNDY, Secured Network Services.
Littleton Industrial Park recently saw the construction of a ground breaking 117,250 square foot new facility for Tender Corporation. Robotec also broke ground on a 23,000 square-foot expansion.
| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 19
$51,025MEDIAN INCOME
90,000DAYTIME POPULATION
Grafton CountyGrafton County is home to both Dartmouth College and Plymouth State University. Grafton has been rated as the fourth “Best Place to Live in Rural America”. Grafton County has favorable economic characteristics including - low unemployment, a favorable cost of living, and the presence of White Mountain National Forest, the state’s only national forest. Grafton County is home to many of New Hampshire’s popular recreational and cultural opportunities, as well as business and economic opportunities.
Demographics3 Mile 5 Mile 10 Mile
2022 Projection 4,299 6,762 14,774
2017 Estimate 4,331 6,802 14,825
2010 Census 4,446 6,960 15,049
2000 Census 4,422 6,764 14,215
Households3 Mile 5 Mile 10 Mile
2022 Projection 2,063 3,150 6,656
2017 Estimate 2,052 3,133 6,619
2010 Census 2,048 3,129 6,586
2000 Census 1,925 2,908 5,943
Income 3 Mile 5 Mile 10 Mile
2017 Est. Average Household Income $62,355 $65,049 $67,879
2017 Est. Median Household Income $44,462 $46,805 $50,434
20 | FEDEX | MARKET AND LOCATION OVERVIEW
EXCLUSIVE SERVICE AREA
The Subject Property is a critical location as it stands as the regional hub for Northern New Hampshire. This location also services Northern New England and Southern Canada. The closest FedEx is over 60 miles away.
FedEx fills a significant void for FedEx Ground. Due to FedEx building requirements, any new built-to-suit building would be too expensive.
REGIONAL FEDEX GROUND LOCATIONS
Lebanon, NH 65.7 Miles
Williston, VT 91.8 Miles
Lewiston, ME 106 Miles
Saco, ME 111 Miles
Plattsburgh, NY 128 Miles
Londonderry, NH 112 Miles
West Chesterfield, NH 126 Miles
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| MATTHEWS REAL ESTATE INVESTMENT SERVICES | 21
GLOBE SHOPPING CENTER
PROPERTY
Styles Br idges Hwy
Industr ia l Park Rd
Meadow St
™
EXCLUSIVELY LISTED BY:
I N D U S T R I A L
FEDEX GROUND - 883 INDUSTRIAL PARK RD I LITTLETON, NH
ALEX HARROLD GARY CHOU
Associate DIRECT 1 310 919 5790MOBILE 1 310 977 [email protected] # 02009656 (CA)
FVP & Senior DirectorDIRECT 1 310 919 5827MOBILE 1 714 928 [email protected] # 01911222 (CA)
CHAD KURZ JOHNNY DUNN
SVP & National Director DIRECT 1 214 692 2927MOBILE 1 562 480 [email protected] # 01911198 (CA)
Associate DIRECT 1 214 682 2289MOBILE 1 817 372 [email protected] # 677506 (TX)
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of FedEx Ground located at 883 Industrial Park Rd Littleton, NH (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
