For Sale
$5,290,767

4400 Industry DrSierra Vista, AZ 85635

Arizona Industrial Net Lease, High ROI

Overview

Added:
Dec 11, 2024
Days on market:
117
This exceptional investment opportunity presents a fee-simple interest in a 26,795-square-foot FedEx Ground distribution warehouse in Sierra Vista, Arizona. Built in 2015, this property boasts a 6.00% cap rate and a strong net operating income (NOI) of $317,446. The property sits on a 5.9-acre lot and features 15 dock-high doors and a 24.5-foot ceiling height. FedEx operates under a triple-net (NNN) lease with minimal landlord responsibilities (roof and structure only), providing passive income generation. The current lease, with a remaining term of 5.8 years, includes a five-year renewal option with a 5% rent increase. The strategic location, less than 1,000 feet from US Highway 90, provides excellent access to Interstate 10, connecting to major markets like Tucson, Phoenix, and El Paso. The property's proximity to Fort Huachuca further enhances its value. The Sierra Vista submarket demonstrates strong performance with a low vacancy rate and consistent rent growth. This investment is backed by FedEx's investment-grade credit rating and their commitment to the property, evidenced by a recent lease extension. The property's design as a distribution warehouse makes it resilient to shifts in the retail landscape. The asking price is $5,290,767.

Highlights

  • Investment-grade tenant FedEx (NYSE: FDX) with $65B market cap.
  • FedEx recently extended lease for five years with a 7.5% rent increase.
  • Excellent logistics location near US-90, I-10, and Fort Huachuca.
  • Passive net lease with landlord responsibility limited to roof and structure.
  • Strong Sierra Vista submarket with 2.5% vacancy and 5.1% rent growth.
  • 2015 built-to-suit construction minimizing near-term capital expenditures.

Property Details for 4400 Industry Dr

Property type
Warehouses, Industrial properties
Square Feet
26,795 SF
Year Built
2015
Lot Size (sq. ft)
257,004 SF

Location Insight

City
Sierra Vista
County
Cochise
State
Arizona
Latitude
31.564963545239
Longitude
-110.25674611248
4400 Industry Dr, Sierra Vista, Arizona

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4400 Industry Dr
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