By: Paul Dionne | Vizzda.com
Daniel Haug of American Realty Capital has completed the acquisition of FedEx Ground’s Tempe Terminal for $16.05m or $110 per square foot in an all cash deal. FedEx has less than six months remaining on the firm term of their lease, though said lease stipulates to two 5-year options to extend FedEx’s interest in the property. The seller, North Carolina-based Levine Properties, undertook a major expansion of the facility in and around 2008 after acquiring the property in 2003.
The 145,872 ft2 distribution facility and warehouse is located on 11.16 acres south of the southwest corner of McKellips Street and McClintock Drive. The original 95,215 ft2 structure was completed in 2004 with a 50,656 ft2 expansion coming online in 2008. There is 8,716 ft2 of office space, with the remaining 139,646 ft2 serving as warehouse. The property is securely enclosed and features thirty-six dock doors and five grade doors. FedEx has leased the property since October 21st, 2004 pursuant to an agreement entered in September of the prior year and expiring on October 31st of this year, subject to the aforementioned option.
Levine properties acquired the site in September 2003 from Freedom Communications for $6,974,100 with $1,530,900 down and $6,974,100 new debt with KeyBank with a maximum possible balance of $10m. That note was replaced by $8.325m from Bank of America with personal guarantees from the debtors. The Bank of America note was modified in July of 2008 to increase the principal balance to $12,462,975. That note was ultimately taken out with $9.7m in new debt with Wells Fargo. This sale comes on the heels of LBA Realty's acquisition of a vacant West Phoenix distribution center last week for $27.97m.
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