EDWARDSVILLE, KS-Cole Cos. purchased two Midwest distribution facilities from FedEx Corp. for $24 million in a 15-year sale-leaseback transaction that closed the afternoon of Nov. 15. Phoenix-based Cole bought the larger of the two facilities--a 155,965-sf building at 9140 Woodend Road in Edwardsville--for $20.5 million. The company paid $3.5 million for a 23,510-sf facility at 3502 S. 11th St. in Council Bluffs, IA.
Ted Gibbons, president of Investment Realty Advisors Inc., tells GlobeSt.com that the length of the leases shows FedEx's commitment to the two locations. The deal included two five-year renewal options at market value. "The outstanding feature of these properties is that the leases were 15-year leases, in lieu of the normal 10-year leases that FedEx typically executes," says Gibbons. "The leases have the full corporate guarantee, not just the FedEx Ground signature that many of the new FedEx leases utilize."
The Edwardsville facility has 16,264 sf of office space, 150 dock doors and room for future expansion on 109.5 acres. Situated on 10.5 acres, the Council Bluff building has 48 dock doors. Both properties were built in 1999.
Investment Realty Advisors, a real estate brokerage and advisory firm that structures investment grade property sales nationwide, represented Cole in the transaction. The sale-leaseback was structured by SunTrust Bank.
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