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.
To Contact the Author:
Paul Dionne – pdionne@vizzda.com
No comments:
Post a Comment