Marketing Package

fedex ground
• new 10-year lease
• 5th most populous city in
wyoming
• relocation site
Brand new facility in strategic western State
with no income tax
2830 Killpecker Drive, Rock Springs, WY 82901
p
or Ma
f
k
c
i
l
C
[ www.CapitalPacific.com ]
PROperty Summary
BRAND NEW FREESTANDING FEDEX GROUND FACILITY WITH
A NEW 10-YEAR LEASE IN THE 5TH MOST POPULOUS CITY
IN WYOMING. RELOCATION site THAT PROVIDES A LARGER
BUILDING WITH ROOM FOR EXPANSION
Listing Team
Contact Info
zandy smith
[email protected] | (415) 274-2707
CA BRE# 01734525
PRICE: $5,855,656
CAP: 6.40%
Rentable SF. . . . . . . . . . . . . . . 26,795 SF
Price per SF. . . . . . . . . . . . . . . $219
Capital Pacific collaborates. Click Here to
meet the rest of our San Francisco team.
land area . . . . . . . . . . . . . . . . 7.72 Acres
Current Rent. . . . . . . . . . . . . $14/SF
fEDeX gROUND | 2
core characteristics
The subject property is located in Rock Springs, WY, which has a population
of nearly 23,000 residents, and within the Rock Springs MSA, which has
approximately 38,000 residents. The subject property is located in a wellestablished industrial park, just south of the Schlumberger Corporation,
which is the leading provider for drilling, production and processing in the
oil and gas industry.
RELOCATION STORE
15.4 million consumers within a 500 mile radius
Rock Springs is At the intersection of I-80 and Hwy 191
Excellent Demographics
FedEx Ground is relocating to this site in order to have a bigger facility to
accommodate the increased business demand. The 7.72 acre site offers
FedEx the ability to expand in the future, contributing to the viability of this
site in the long-term.
The average household income is over $70,000 within a one mile radius and
over $80,000 within a three and 5 mile radii. There are also over 28,000 people
within a 5 mile radius.
STRATEGIC LOCATION
10-year primary lease term with a 10% rental increase in the 1st option and a
5% rental increase in the 2nd option.
Rock Springs is conveniently located on the Interstate 80 corridor
approximately 180 miles from Salt Lake City and the Salt Lake City international
airport. FedEx Ground has had a facility in Rock Springs for over 20 years and
demonstrated their commitment to the area by relocating to a larger, high
tech building that will allow them to grow into the future.
LEASE INFORMATION
NN Lease
The facility opened for business and rent commenced on May 20th, 2016.
DENSE INDUSTRIAL AREA
The subject property is located in a dense industrial area. Industrial zoned
land is hard to secure in Rock Springs, due high barriers to entry, which make
the land expensive.
[ Actual photo]
fEDeX gROUND | 3
aerial
rock springs is conveniently located on the interstate 80 corridor
80
Sage
Elementary
191
Pilot Butte
Elementary
Westridge
Elementary
30
er
at
tw e
ee riv
Sw D
WHITE MOUNTAIN MALL
North Park
Elementary
Rock Springs
Jr. High School
Stagecoach
Drive
Overland
Elementary
SPRINGS PLAZA
one
wst
d
Roa
Yello
Honnen
Equipment
80
WHITE MOUNTAIN
GOLF COURSE
191
College Drive
De
wa
rD
30
15,600 DAILY
Killpecker Drive
Elk Street
riv
e
191
Walnut
Elementary
Desert View
Elementary
SWEETWATER
COUNTY
SWEETWATER
COUNTY
Rock Springs
East Jr. High School
Independence
High School
Ne
w
H
St am
re ps
et h
ir
e
Lincoln
Elementary
430
80
Rock Springs
High School
30
80
CHEYENNE
fEDeX gROUND | 4
income & expense
$5,855,656
PRICE
Price Per Square Foot:
$219
Capitalization Rate:
6.40%
Total Rentable Area (SF):
26,795
Lot Size (Acres):
STABILIZED INCOME
7.72
Per Square Foot
Scheduled Rent
$13.99
$374,762
Effective Gross Income
$13.99
$374,762
LESS
Per Square Foot
Taxes
$0.00
Insurance
$0.00
EQUALS NET OPERATING INCOME
$374,762
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as
to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
fEDeX gROUND | 5
rent roll
TENANT INFO
Tenant Name
FedEx Ground
Totals:
LEASE TERMS
Sq. Ft.
26,795
26,795
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
5/20/16
5/19/26
$374,762
$31,230
$374,762
$1.17
$13.99
5/20/26
5/19/31
Option 1
$34,353
$412,238
$1.28
$15.38
5/20/31
5/19/36
Option 2
$36,071
$432,850
$1.35
$16.15
$374,762
$31,230.16
$374,762
$31,230.16
$13.99
This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
fEDeX gROUND | 6
fedex ground
FedEx Ground Package System, Ltd.
FedEx Ground Package System, Ltd. is a wholly owned subsidiary
of FedEx Corporation.
FedEx Ground
FedEx Ground provides ground delivery of small packages
throughout the US and Canada. Deliveries are generally made
within one to five business days, depending on distance.
The company offers both business-to-business and home
delivery services via a fleet of more than 35,000 owner-operated
motorized vehicles (owned by the drivers) and 38,100 companyowned vehicles. FedEx Ground employs over 65,000 team
members and handles an average of 3.5 million+ shipments per
day from a network of more than 30 hubs.
2014 REVENUE
$11.5 B
Federal Express Corporation was founded in Little Rock, AR
in 1971 and launched its first overnight delivery in 1973. The
corporation operates with several subsidiaries including FedEx
Express, FedEx Ground and FedEx Freight. FedEx reaches more
than 220 countries and delivers over 10 million shipments daily
via express, ground, freight and expedited services. FORTUNE
Magazine ranked FedEx No. 8 among the “World’s Most Admired
Companies” and No. 1 in the delivery industry (2014).
2015 REVENUE
$47.4 B
FORTUNE 500
#65
YOY REVENUE INCREASE
15%
FedEx Ground has gained market share
from UPS for 16 consecutive years.
fEDeX gROUND | 7
in the news
Fedex undervalued and back in the
driver’s seatCanada
Excerpts from Barron’s article on 5/4/2016 - click here to read entire article.
Transportation stocks had a rough 2015, but FedEx has jumped 10% so far this year.
Wednesday brought more good news with Barclay’s analyst Brandon Oglenski upgrading shares of FedEx (ticker: FDX ) from Equal Weight to Overweight, and raising his price target to $205 from $175.
“We think the combination of solid package market dynamics, a management
team more focused on margins over growth and a relatively ‘cheap’ valuation
should support meaningful appreciation for long-term investors,” he wrote.
FedEx was up 1.3% to $166.90 in recent trading following the report. Though
shares already saw their biggest one-day gain since 2002 this year, we also see
more upside.
Growth in package volume—driven by global ecommerce—is “the lone bright
spot” in Oglenski’s coverage area, and one that should continue to be a tailwind
for FedEx. Amazon.com’s ( AMZN ) blowout first quarter points to strength in
online shopping.
Yet while global ecommerce is a well-known story, Oglenski writes that even
more importantly (if not as obviously) “FedEx is finally addressing a decade long
problem of over-capacity in the legacy Express business.”
Oglenski applauds a greater focus on margins from management, which he
believes has allowed the company to sustain its earnings expansion even in a
softer macro environment in recent years. Although FedEx has long outperformed
the S&P 500, its renewed focus on margins has heartened analysts more recently.
“Financial return expansion drives a
higher valuation on FDX”
In his bull case scenario, Oglenski writes that “Express ‘profit improvement’ plan
drives continued margin gains, e-commerce supports volume growth, and TNT
integration leads to material synergies. Financial return expansion drives a higher
valuation on FDX, with an upside case potentially +40%.”
That would put the shares near $225. Earlier this year, Barron’s argued that FedEx
could rise 20% and easily end the year at $195.
Shares are up 2% since that article’s publication—compared to a nearly flat S&P
500.
FedEx trades at about 13.5 times forward earnings today, but as Barron’s argued,
a multiple of 15 seems reasonable, given that earnings per share are expected
to jump more than 20% year-over-year this year. Also, FedEx’s 14.1% long-term
growth rate well exceeds the industry average. By comparison, rival United Parcel
Service ( UPS ) trades at more than 16.5 times forward earnings with a long-term
growth rate below 10%.
In his note, Oglenski also said the shares were too cheap considering its earnings
outlook and improving returns. We agree and expect FedEx to deliver.
fEDeX gROUND | 8
site plan
Site Plan Key
Parcel outline:
Land Area:
7.72 AC
Building Area: 26,795 sf
Ingress/Egress:
ve
Killpecker Dri
ne
to
ws
llo
Ye
ad
Ro
This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties,
expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies.
fEDeX gROUND | 9
Population
location & demographics
2010
2016
2020
Rock Springs, WY Overview
Rock Springs is located in Sweetwater County, Wyoming, an energy-rich region with
many oil and natural gas wells. The city had a 2010 population of 23,036. It is also a
principal city of the Rock Springs micropolitan statistical area, which has a population
of 37,975.
Rock Springs is the site of Western Wyoming Community College and Wyoming’s Big
Show, a yearly event with a carnival and concerts, which is held at the Sweetwater
County Events Complex.
1-Mile
3-Mile
5-Mile
1,571
1,597
1,639
12,956
14,031
15,091
26,851
28,906
30,699
1-Mile
3-Mile
5-Mile
$70,417
$61,112
$82,107
$70,525
$82,295
$73,053
2016 Household incomes
Average
Median
Top Employers in sweetwater County
FMC Wyoming
Halliburton
Sweetwater County School District No. 1
General Chemical Company
rock springs
downtown
15,600 DAILY
Elk Street
fEDeX gROUND | 10
location & demographics
Sweetwater County - Industry and logistics
15.4 million consumers can be reached within10 hours/500 miles of Sweetwater
County. Sweetwater County is home to the largest maintained public road network
in the state. 140 miles (28 exits) of I-80 run centrally through the county. Along with
Union Pacific Railroad mainline, it is home to the Rock Springs/ Sweetwater County
Airport which offers direct commercial jet service to Denver twice a day
The County benefits from a diverse mineral base, including trona, natural gas, coal,
fertilizer and uranium production. Sweetwater County has the mineral resources
to support industrial development on a large scale. The County also has carbon
sequestration capacity within the Rock Springs uplift for storing carbon emissions
This diversity helps the region weather the cycles of any one industry, while also
offering a cost of doing business that is lower than many of the nearby oil-producing
regions
Aggressively pro-business, Wyoming ranks 1st in the Tax Foundation’s 2013 State
Business Tax Climate Index, supported by a wide array of state and local incentives
for business development.
representative employers
fEDeX gROUND | 11
A unique HUMAN
RESULTS-DRIVEN
client experience
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
Zandy Smith
[email protected] | (415) 274-2707 CA
BRE# 01792433
zeb ripple
[email protected] | (415) 274-2702
CA BRE# 01242540
chris kostanecki
Capital Pacific collaborates. Click here to
meet the rest of our San Francisco team.
[email protected] | (415) 274-2701
CA BRE# 01002010
Dave lucas
John Andreini
Chris peters
Rick Sanner
Bob Sanner
joe caccamo
Gregg Steele
Jack Navarra
Karla Zens
[email protected] | (415) 274-2703
CA BRE# 01339983
aaron susman
[ Copyright © 2016 Capital Pacific LLC ]