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FedEx Ground
Representative Photo
new construction, Strong Industrial Market
634 College Street East, Belleville, ON
For more info on this opportunity please contact:
Zandy Smith
Chris Peters
Chris Kostanecki
Zeb Ripple
zsmith@capitalpacific.com | (415) 274-2707
CA BRE# 01734525
ck@capitalpacific.com | (415) 274-2701
CA BRE# 01002010
cpeters@capitalpacific.com | (415) 274-2703
CA BRE# 01339983
zripple@capitalpacific.com | (415) 274-2702
CA BRE# 01002010
Karla Zens
kzens@capitalpacific.com | (415) 274-2714
CA BRE# 01915057
Capital Pacific collaborates. Click here to
meet the rest of our San Francisco team.
Fedex Ground IS CURRENTLY UNDER CONSTRUCTION and
features a 10-year NN lease.
Investment Highlights
The subject property is located in Belleville, Ontario, a dynamic city with a
thriving growing industrial base, located just two hours east of Toronto. The
property is situated within Northeast Industrial Park, a thriving industrial
development that is home to leading companies including Kellogg’s, Proctor &
Gamble, Sears and Exxon Mobil.
PRICE: $6,296,960
CAP: 6.25%
RENTABLE SF. . . . 28,900 SF
PRICE PER SF . . . . $217.89
LAND AREA. . . . . . 7 Acres
LEASE TYPE. . . . . . NN
YEAR BUILT. . . . . . 2015
property highlights
The property is situated on the recently expanded section of E. College Street, which was expanded
as part of an initiative to increase the size of Northeast Industrial Park by an additional 800 acres.
STRONG tenant
Fed Ex Ground Package System, Ltd. is a wholly owned subsidiary of FedEx Corporation, which
has an S&P rating of BBB and a net worth in excess of $17.4 billion
FedEx Ground operates 528 facilities, including 33 hubs, in the United States and Canada
Lease Highlights
Brand new 10 year NN lease, rent commences 5/25/2015
Two (2) 5-year options with rental increases of 10% at commencement of 1st option and
5% at commencement of 2nd option
Representative Photo
fEDeX gROUND | 2
Key Industrial Location
Strategic expansion of industrial park
FedEx Ground is located within Northeast Industrial Park, a dynamic industrial
hub that is home to Kellogg’s, Procter & Gamble Sears and Exxon Mobil.
Northeast Industrial Park has recently expanded by 200 acres, and
an additional 600 acres has been approved for development.
401
TORONTO
37
62
401
Land a
Land Approved for expansion
of Northeast Industrial Park
(800 acres total)
401
STEPPS QUINTE MALL
CENTRE POINT MALL
BELL-FRONT
ad
n Ro
nifto
Can
N Front Street
Park Dale
Public School
Hillcrest
Public School
College Street E
Prince of Wales
Public School
College Street W
Quinte
Secondary School
Station Street
62
fEDeX gROUND | 3
Income & Expense
PRICE
$6,296,960
Price Per Square Foot:
$217.89
Capitalization Rate:
6.25%
Total Rentable Area (SF):
28,900
Lot Size (Acres):
STABILIZED INCOME
7.00
Per Square Foot
Scheduled Rent
$13.72
$396,450
Effective Gross Income
$13.72
$396,450
LESS
Per Square Foot
Taxes
NNN
$0.00
Insurance
NNN
$0.00
Roof & Structure
$0.10
($2,890.00)
EQUALS NET OPERATING INCOME
Representative Photos
$393,560
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 | 4
Rent Roll
TENANT INFO
Tenant Name
FedEx Ground
Totals:
LEASE TERMS
Sq. Ft.
28,900
28,900
Term
RENT SUMMARY
Current
Rent
Monthly
Rent
Yearly
Rent
Monthly
Rent/FT
Yearly
Rent/FT
5/25/15
5/24/25
$396,450
$33,038
$396,450
$1.14
$13.72
5/25/25
5/24/30
Option 1
$36,341
$436,095
$1.26
$15.09
5/25/30
5/24/35
Option 2
$38,158
$457,900
$1.32
$15.84
$396,450
$33,038
$396,450
$33,037.50
$13.72
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.
Representative Photo
fEDeX gROUND | 5
FedEx Ground
Representative Photos
Fed Ex Ground Package System, Ltd.
Fed Ex Ground Package System, Ltd. is a wholly owned subsidiary
of FedEx Corporation.
2014 REVENUE
$10.6 B
YOY REVENUE INCREASE
10%
Fed Ex Ground
Fed Ex 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 more than 3.5 million
shipments per day from a network of more than 30 hubs.
In FY14, FedEx invested nearly $1 billion in
FedEx Ground — 90 percent to support growth
initiatives by expanding the network’s capacity
2014 REVENUE
$45.5 B
FORTUNE 500
#64
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 more than 10 million shipments daily via express, ground, freight, and expedited services.
FORTUNE Magazine ranked FedEx No. 8 among
“World’s Most Admired Companies” and No. 1 in
the delivery industry (2014).
fEDeX gROUND | 6
In The News
FedEx Retail Expansion in Canada
FedEx serves a rapidly
growing online shopping
market in Canada
Excerpts from Forbes article on 5/1/2014 - click here to read
entire article.
“Online retail sales have historically been tempered by the
cost of shipping: shipping a package by Canada Post costs in
Canada are so high because of the lack of volume of sales and
vast geographic distribution of relatively lesser population.
Such conditions do not allow retailers to take advantage of
scale and reduce shipping costs. However, FedEx may leverage its broader network in Canada and vast international
presence to offer lower shipping costs to retailers, who may
then be able to pass on the cost benefits to their customers.
Offering lower costs will attract more retailers to use FedEx
services, leading to an increase in FedEx’s market share and
package volume in Canada. The increase in volume should be
able to offset lower revenue per package, resulting in higher
revenues for the company from the region.”
In 2014 Fedex announced an agreement with Home Hardware Stores Limited allowing individual owners of Home Hardware stores to house FedEx authorized
Ship Centers. This goves FedEx the potential to dramatically expand its retail footprint in the 100+ Home Hardware stores across Canada.
Because of rising demand in Canada,
FedEx expanded its services there
in 2014, adding new daily flights
between its world hub in Memphis
and Winnipeg, Manitoba and
Vancouver Island.
Online sales growth in Canada
Forrester Research forecasts that online retail sales in Canada will grow to C$33.8
billion by 2018 (from $20.6 billion in 2013) driven by the increase in the number
of retailers, national and international, setting up Canadian websites and offering
shipping facilities to the country.
Online retail sales will also be driven by the growing internet usage in Canada.
According to the World Bank, 87 out of 100 people in Canada have access to the
Internet, compared to 81 out of 100 in the U.S. With an increased presence in
Canada, FedEx will be in a better position to cater to the increase in online retail
sales and benefit from the increase in volumes.
fEDeX gROUND | 7
Site Plan
Site Plan Key
Parcel outline:
Land Area:
32,234 SF
Building Area: 2,622 sf
College Street East
Ingress/Egress:
Site Plan Not To Scale
fEDeX gROUND | 8
Photos
Construction
Photos:
March 22, 2015
fEDeX gROUND | 9
Prime
ial
Industr
Location
Regional Map
Belleville is just
2 hours East of
Toronto, on
Representative Photo
FedEx
Belleville
2 Hours
188 km
Toronto
fEDeX gROUND | 10
Location & Demos
Belleville, Ontario Overview
Belleville is a thriving city with a diverse economy and a population of over 50,000 people.
Located in South Eastern Ontario it is the largest urban center in the Quinte region of Ontario,
which has an overall population of 210,000.
The city of Belleville offers a competitive strategic location based on its central location within
500 miles of strategic Canadian and US markets, such as Toronto, Montreal, Ottawa, Chicago
and New York City.
There are 120,000,000 people within one day’s drive of Belleville. The highway 401 corridor
provides access to all large markets, and Belleville has three interchanges to the highway. In
addition, highways 37 and 62 provide direct access to northern regions of Ontario.
cANADIAN fORCES bASE tRENTON
Canda’s largest Air Force Base, CFB Trenton, is just a 10 minute drive from Belleville. From
delivering supplies to the high Arctic to airlifting troops, equipment and humanitarian loads
worldwide, 8 Wing/CFB Trenton is the hub of air mobility operations in Canada.
8 Wing is the largest employer in the Quinte Regions with an annual payroll of more than
$110 million, creating a significant economic impact in the local economy. The existing base
is being upgraded at a cost of $1B, and in addition there is a 900 acre expansion underway.
The expansion of the base will accomodate an additional 1,000 trops. Currently there are
approximately 3,200 regular force, 600 reserve force and 500 civilian members who makeup the workforce at 8 Wing/CFB Trenton, and many members and their families call Belleville
home.
Population
1-km
3-km
5-km
214
207
252
14,962
14,159
14,064
35,638
34,473
34,364
1-km
3-km
5-km
$103,317
$91,429
$78,152
$66,012
$72,259
$59,981
2009
2014
2019
2014 Household incomes
Average
Median
major Employers in BAY OF QUINTE
Employer
CFB Trenton
Convergys
Autosystems
Procter and Gamble
# of Employees*
4,000
1,300
1,000
628
*Approximate
fEDeX gROUND | 11
Belleville, Ontario - INDUSTRIAL ECONOMY
The Bay of Quinte’s industrial base has over 350 companies including 120 manufacturers. A
strong food-processing sector, comprised of 35 companies, employs 2,200 people.
Procter & Gamble, Kellogg’s, Bardon
Supplies Limited, Redpath, Parmalat,
Sigma Stretch, Magna, Amer Sports
Canada, Sears and Avaya (formerly
Nortel) all have operations in Belleville.
Belleville lABOR fORCE
Many other manufacturing sector
companies operate within the city,
including Bioniche Life Sciences,
Sprague Foods, Airborne Systems
Canada Ltd, Berry Plastics Canada,
Sigma Stetch Film Canada, CpK Interior
Products, Halla Climate Control Canada,
Reid’s Dairy, Parmalat Canada - Black
Diamond Cheese Division, Kelloggs
Canada and Norampac Inc.
Belleville attracts and retains businesses across many sectors because of its low development
costs and broad labor pool. The greater Bay of Quinte region is home to a highly motivated
labour force of 104,775 men and women with mechanical, industrial, computer and other skills.
Belleville, Ontario - Transport
Belleville is served by Toronto Pearson Airport (2 hour drive). In addition, both the Canadian Pacific
Railway (CPR) and the Canadian National Railway (CNR) run through Belleville and access the
industrial park.
fEDeX gROUND | 12
A unique HUMAN
RESULTS-DRIVEN
client experience
Representative Photo
The capital pacific experience - our daily commitment to our clients
[ www.CapitalPacific.com ]
Zandy Smith
Chris Peters
Chris Kostanecki
Zeb Ripple
zsmith@capitalpacific.com | (415) 274-2707
CA BRE# 01734525
ck@capitalpacific.com | (415) 274-2701
CA BRE# 01002010
cpeters@capitalpacific.com | (415) 274-2703
CA BRE# 01339983
Karla Zens
kzens@capitalpacific.com | (415) 274-2714
CA BRE# 01915057
zripple@capitalpacific.com | (415) 274-2702
CA BRE# 01002010
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