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Cole Buys FedEx Facilities in Sale-Leaseback

EDWARDSVILLE, KS-In a $24-million transaction that closed Nov. 15, Cole Cos. picked up a 155,965-sf building here and a 23,510-sf facility in Council Bluffs, IA.

By Danielle Anderson | Updated on November 17, 2006

(To read more on the industrial market, click here.)

EDWARDSVILLE, KS-Cole Cos. purchased two Midwest distribution facilities from FedEx Corp. for $24 million in a 15-year sale-leaseback transaction that closed the afternoon of Nov. 15. Phoenix-based Cole bought the larger of the two facilities–a 155,965-sf building at 9140 Woodend Road in Edwardsville–for $20.5 million. The company paid $3.5 million for a 23,510-sf facility at 3502 S. 11th St. in Council Bluffs, IA.

Ted Gibbons, president of Investment Realty Advisors Inc., tells GlobeSt.com that the length of the leases shows FedEx’s commitment to the two locations. The deal included two five-year renewal options at market value. “The outstanding feature of these properties is that the leases were 15-year leases, in lieu of the normal 10-year leases that FedEx typically executes,” says Gibbons. “The leases have the full corporate guarantee, not just the FedEx Ground signature that many of the new FedEx leases utilize.”

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