401 Paintersvi l le Road - HUNKER, PENNSLYVANIA 15639
Investment Overv iew
• FedEx Ship Center in Hunker, Pennsylvania | 37 Miles Southeast of Pittsburgh
• Corporate Guaranty | New York Stock Exchange (NYSE): FDX | Number 58 in Fortune 500 (June 2016)
• More Than Nine Years Remaining on Double-Net Lease | Limited Landlord Responsibilities
• Tenant Demonstrates Commitment | 27-Year Operating History | Recently Signed New 10-Year Lease Extension
• Tenant Making Significant Capital Improvements | New Landlord Responsible for $153,444 of Allowance for Tenant Improvements
• Tenant Capitalizing on E-Commerce Trend | One of Three Enterprises that Delivers 95 Percent of All Orders in the United States
• FDX Strong Top Line Growth | 6 Percent Growth in Revenue in 2016 ($50 Billion) | 220 Basis Point Increase in Operating Margin
• TNT Express Acquisition | May 2016 | Broadens Portfolio of International Transportation Solutions
• Large Parcel | More than Three Acres
• Centrally Located to Three Major Highways | Interstate 70 (33,000 Vehicles Per Day) | Pennsylvania Turnpike (35,000 Vehicles Per Day) | Three Miles From US-119 (16,000 Vehicles Per Day)
Marcus and Millichap is pleased to present this 25,574-square foot FedEx Shipping Center located in the small community of Hunker, Pennsylvania; Hunker is approximately 37 miles southeast of Downtown Pittsburgh. FedEx has been operating at this location for 27 years, and has demonstrated their commitment by extending their lease an additional 10 years in October 2016. There are currently more than nine years remaining on this double-net lease. FedEx is required to pay for all expenses except repair and replacement of HVAC, roof, and structure. The new landlord will be responsible to give the tenant $153,444 for tenant improvements. These new capital improvements reiterate the tenant’s commitment to location. The lease is guaranteed by Federal Express Corporation, the world’s largest express transportation provider, delivering 3.5 million packages daily in more than 220 countries. FedEx ranked number 58 in the Fortune 500 in 2016.
FedEx Corporation posted a 6 percent growth rate in 2016, resulting in more than $50 billion in revenue. Their margins are also continuing to improve, as there was a 220 basis point increase in their operating margin. In May of 2016 FedEx Corporation acquired TNT Express, which has since allowed them to broaden and diversify their portfolio of international transportation solutions.
Situated on a large 3.10-acre parcel, this highly visible FedEx Shipping center is ideally located near three major highways: Interstate-70, Pennsylvania Turnpike, and US-119. More than 84,000 vehicles pass through these highways each day. This is an ideal location for shipping centers as FedEx Ground and UPS Customer Center are located within three miles of this asset.
401 Paintersvi l le Road - HUNKER, PENNSLYVANIA 15639
Tenant Overv iew - Fedex Ship Center
With an eye on the future, Federal Express expanded its express delivery service to create a more diversified corporation of different but related businesses. Originally called FDX Corporation, FedEx Corporation was formed in January 1998 when it acquired Caliber System Incorporated. With 95 percent of world consumers living outside the United States borders, FedEx has worked to make international shipping as easy as possible for customers who want to connect with opportunity in global markets.
With the value of global trade now at more than $18 trillion, FedEx has continued transforming its business to better align with projected worldwide population and economic growth. One key to that has been the acquisition of numerous transportation companies that allows FedEx to directly serve specific markets and provide better service to our customers. FedEx Trade Networks is now one of North America’s largest-volume customs entry filers and a leader in international ocean and air freight forwarding and trade facilitation.
401 Paintersvi l le Road - HUNKER, PENNSLYVANIA 15639
Hunker is a borough in Westmoreland County, Pennsylvania, United States, and since 1950 has been part of the Pittsburgh metropolitan area. Pittsburgh is located in southwestern Pennsylvania at the confluence of three rivers: the Allegheny, the Monongahela and the Ohio. Known as the Steel City, Pittsburgh emerged in the late 1800s as a world center for coal and steel. Pittsburgh remains the state’s second-largest city and an important industrial center.
Today, Pittsburgh is a city of 400,000, with a diversified economy that embraces high tech companies such as Rockwell Automation and financial services companies such as Mellon Financial and PNC Financial. Other top companies based in the area include: Alcoa, US Steel, Heinz, US Airways and Westinghouse. Pittsburgh is one of America’s safest and most affordable cities, with a high quality of life.
Thanks in part to the generosity of the Heinz and Carnegie families, Pittsburgh has many quality cultural attractions. The world-class Pittsburgh Symphony Orchestra owns and plays at Heinz Hall. The Carnegie Museum of Art has one of the world’s most impressive collections, with works by van Gogh, Monet and other giants, as well as the Heinz Architectural Center. For more modern art, the Warhol Museum showcases works by Pittsburgh native son Andy Warhol. Fans of architecture can tour what is arguably the greatest architect’s greatest creation, Frank Lloyd Wright’s Fallingwater home in the nearby Mill Run.
Sports are a passion in Pittsburgh, with three major league teams. Just across the Allegheny River, 38,000-seat PNC Park is home to the Pittsburgh Pirates. Next door is Heinz Field, whose 64,000-seat stadium is home to the NFL’s Pittsburgh Steelers as well as college football’s Pitt Panthers. Downtown is the 17,000-seat Mellon Arena, better known as “the Igloo,” which hosts the NHL’s Pittsburgh Penguins.
