FedEx Freight | Regional Hub



Property Description

A single-story, 160,410-square-foot, Class A, truck terminal and associated outbuildings situated on a 70.5-acre site (the “Property”). The Property was constructed in 2009 as a build-to-suit for FedEx Freight Inc. (the “Tenant” or “FedEx Freight”), a wholly-owned subsidiary of FedEx Corporation (the “Parent” or “Guarantor”). The Property is leased in its entirety to FedEx Freight Inc. with a parent guarantee from FedEx Corporation. The Tenant has 102 months remaining on its initial 180-month lease term through January 9, 2024. FedEx Freight operates a network of 370 service centers nationwide and is the largest less-than-truckload carrier in North America. For the year ended May 31, 2014, FedEx Freight generated $319 million in net income on revenue of $5.76 billion and handled approximately 91,000 less-than-truckload shipments daily. FedEx Corporation, the guarantor of the lease, is ranked #64 on the 2014 Fortune 500 list, and maintains investment-grade credit ratings of BBB from Standard and Poor’s, Baa1 from Moody’s, and A+ from Egan-Jones.

Business Essential Attributes

The Property is an essential operating asset for FedEx Freight and functions as one of 12 “dual regional hubs” for FedEx Freight in the United States. “Dual regional hubs” function as regional hubs for both FedEx Freight Priority service and FedEx Freight Economy service. FedEx Freight operates 370 service centers nationwide, and the network is anchored on the 12 “dual hubs”. FedEx Freight has several dedicated “Priority” hubs and several dedicated “Economy” hubs; however only 12 hubs nationally serve as both “Priority” and “Economy” hubs. As a regional hub, the Property is two-to-three times larger than the typical non-hub service centers which only service their local MSAs in a defined geography.

Additional Property Information

The Property is a secure, cross-docked trucking terminal comprised of a 133,040-square-foot warehouse/terminal area, a 13,650-square-foot attached office area, a 13,560-square-foot freestanding tractor/trailer maintenance building with wash bay, and a 160-square-foot guardhouse. The Property features 272 dock-high truck doors (1 door per 590 square feet), of which doors 1-100 are dedicated for local pickup-and-delivery service, and doors 101-272 are dedicated for regional hub service for both priority and economy shipments. The site features three fueling stations with six total stalls, a digital truck scale, abundant concrete truck pads, 311 employee parking spaces, 213 tractor/converter dolly parking stalls, and 801 trailer parking stalls.

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FedEx Freight | Regional Hub

West Jefferson, Ohio

PROPERTY AT A GLANCE

Property Type: Single-Story Truck Terminal
Square Footage: 160,410

Leased: 100%
Lease Expiration: January 9, 2024
Renewal Option(s):
Two, 5-year fixed-rate renewal options
Rent Increase(s):
0.9% annual rent escalations
Tenant: FedEx Freight, Inc.
Parent (Guarantor): FedEx Corporation (S&P: BBB)
Website*: www.fedex.com
NYSE Ticker*: FDX
*Website and stock ticker symbol are for FedEx Corporation, the Parent company and lease guarantor.

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This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here. Otherwise, to proceed, agree to the Terms and Conditions and Privacy Policy of this website.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. NO OFFERING IS MADE TO NEW YORK RESIDENTS EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN GRIFFIN CAPITAL ESSENTIAL ASSET REIT II, INC. INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THIS PROGRAM WILL BE ATTAINED. 

Risk Factors: An investment in Griffin Capital Essential Asset REIT II, Inc. involves a high degree of risk and there can be no assurance that the investment objectives of this program will be attained. Some of the risks associated with this offering include the following: this is a “best efforts” offering and some or all of our shares may not be sold; no public market currently exists for our shares; it may be difficult to sell your shares, and if you do, it will likely be at a substantial discount; the purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock; we must depend on our advisor to conduct our operations; we will pay substantial fees and expenses to our advisor; there are substantial conflicts of interest among us and our sponsor, advisor, dealer manager and property manager; we may use substantial debt to acquire our properties; we may fail to continue to qualify as a REIT; our share redemption program is subject to available liquidity and other significant restrictions and we may amend, suspend or terminate the share redemption program at any time; a portion of the offering proceeds may be used to redeem or repurchase our shares; and future distribution declarations are at the sole discretion of the board of directors and are not guaranteed. We may fund a portion of our distributions from offering proceeds or from borrowings in anticipation of future cash flows, some or all of which may be a return of capital. 

close

Please Accept

The Griffin Capital Essential Asset REIT II, Inc. website is available for use subject to its Terms and Conditions and our Privacy Policy. Please click on the highlighted terms to review these. To review a summary of the risk factors related to an investment in the Griffin Capital Essential Asset REIT II, Inc. program  click here.

This material must be read in conjunction with the applicable prospectus in order to understand all the implications and risks of any offering of securities to which the material relates. If you have not previously reviewed a prospectus, click here. Otherwise, to proceed, agree to the Terms and Conditions and Privacy Policy of this website.

THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PROSPECTUS. THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING. NO OFFERING IS MADE TO NEW YORK RESIDENTS EXCEPT BY A PROSPECTUS FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. NEITHER THE SECURITIES AND EXCHANGE COMMISSION, THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE SECURITIES REGULATOR HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THE PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN GRIFFIN CAPITAL ESSENTIAL ASSET REIT II, INC. INVOLVES A HIGH DEGREE OF RISK AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES OF THIS PROGRAM WILL BE ATTAINED. 

Risk Factors: An investment in Griffin Capital Essential Asset REIT II, Inc. involves a high degree of risk and there can be no assurance that the investment objectives of this program will be attained. Some of the risks associated with this offering include the following: this is a “best efforts” offering and some or all of our shares may not be sold; no public market currently exists for our shares; it may be difficult to sell your shares, and if you do, it will likely be at a substantial discount; the purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock; we must depend on our advisor to conduct our operations; we will pay substantial fees and expenses to our advisor; there are substantial conflicts of interest among us and our sponsor, advisor, dealer manager and property manager; we may use substantial debt to acquire our properties; we may fail to continue to qualify as a REIT; our share redemption program is subject to available liquidity and other significant restrictions and we may amend, suspend or terminate the share redemption program at any time; a portion of the offering proceeds may be used to redeem or repurchase our shares; and future distribution declarations are at the sole discretion of the board of directors and are not guaranteed. We may fund a portion of our distributions from offering proceeds or from borrowings in anticipation of future cash flows, some or all of which may be a return of capital.