Zakin tells GlobeSt.com that his firm has been retained by Scannell Properties, which he says is one of the largest developers of FedEx build-to-suit facilities in the US. The properties are net leased to FedEx Ground, a subsidiary of FedEx.
[IMGCAP(2)]The Binghamton facility is a new 61,793-sf distribution center servicing a 125-mile radius feeding from the central hub facility located in Harrisburg, PA. Binghamton is located at the crossroads of Interstates 81 and 88, as well as New York State Route 17. The Plattsburgh facility is a distribution center servicing the hub facility located in Syracuse, NY. Originally built in 2006 as a 31,088-sf distribution center, FedEx recently expanded the facility by 60%, increasing its total size to 49,780 sf. The expansion of the facility is near completion. The facility has direct access to Interstate 87, which connects Montreal with Albany and points south.
Zakin says that the properties "were built to FedEx spec based upon need for FedEx to continue to expand its network in these particular regions." He adds that the developer typically will sell the properties after completion and delivery to FedEx. The two properties have been priced "very competitively," he says, at $6.95 million for Binghamton, and $6.5 million for Plattsburgh. Both properties are priced at a 7.5% cap rate, which, according to Zakin, "is very attractive."
Zakin explains that, so far, the firm has a lot of interest from net lease fund buyers, 1031 exchange buyers, and some foreign investor groups "that are attracted to the credit quality of FedEx." Newmark has not established a bid date, he says, because the firm is "prepared to accept offers at the asking price from qualified buyers," however he adds that the firm may decide to set a bid date after Labor Day "if there are multiple buyers vying for properties." Properties can be purchased individually or as portfolio.
"The properties have also drawn attention as they are in New York State," Zakin says. "The Binghamton facility has room for further expansion." FedEx Ground has made a long-term commitment to each location as each property is subject to a 10-year net lease plus renewal options that total an additional 10 years.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
