Duluth, MN - FedEx Ship Center

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the leasehold interest (building ownership) in a FedEx-anchored, two-tenant investment property located at Duluth International Airport in Duluth, Minnesota. FedEx has more than six years of remaining lease term and has continuously occupied the property for more than 35 years, exercising multiple renewal options and demonstrating its long-term commitment to the site. The property benefits from a NNN lease structure, with tenants responsible for real estate taxes, insurance, and substantially all maintenance obligations. FedEx also reimburses annual ground rent expense in excess of $6,992, while unreimbursed landlord responsibilities are generally limited to the first $6,992 of annual ground rent, the roof, structure, select exterior elements, and HVAC replacement, making the asset an attractive, low-management investment opportunity.

The property is located on Duluth International Airport and benefits from direct access to the runway, taxiway, and ramp areas, providing a highly specialized airside configuration that cannot be replicated at an off-airport location. The facility serves a mission-critical role within FedEx’s regional air cargo network, making relocation operationally complex and cost prohibitive. Ownership further demonstrated the property’s long-term strategic value by completing a 7,668-square-foot expansion in 2017, increasing the FedEx facility to 29,688 square feet to accommodate the tenant’s continued growth. The asset also benefits from a diversified income stream through a second tenant, Vantage DLH LLC, which occupies a separate building on the property under an independent lease. The aviation-related use of both facilities reinforces the property’s role as essential airport infrastructure and supports long-term occupancy.

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Listing ID: a28TP0000030yAXYAY