| Purchase Price | $10,570,000 |
|---|---|
| Annual Rental Income | $634,200 |
| Cap Rate | 6% |
| Lease Term | 10 Years |
| City | Dallas MSA |
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FedEx Triple Net Investment Opportunity
Dallas MSA, Texas
This offering presents a premier opportunity to acquire a FedEx ground distribution facility located in the Dallas Metropolitan Statistical Area. Situated on a sizable parcel with excellent highway access, fee simple ownership, and an absolute triple net lease backed by a corporate guarantee, this property offers investors a stable, long-term income stream from a nationally recognized logistics leader. With a 10-year lease term and no landlord responsibilities, this asset is ideal for investors seeking predictable cash flow and strong credit security in one of the nation’s most robust real estate markets.
Location and Market Overview
The property is strategically positioned within the Dallas MSA, benefiting from proximity to major transportation corridors including Interstate 35E, Interstate 20, and the President George Bush Turnpike. The site experiences daily traffic counts exceeding 50,000 vehicles on the adjacent roadway, providing excellent visibility and accessibility for logistics operations. The location’s connectivity supports efficient distribution throughout North Texas and the broader Southwest region.
Dallas is a thriving economic hub with a population exceeding 7.5 million in the metro area. The city’s diversified economy includes technology, finance, healthcare, manufacturing, and logistics sectors. Dallas continues to attract corporate investment and population growth, strengthening demand for industrial and distribution real estate assets. The region is also a major transportation nexus with several airports, rail yards, and highways facilitating logistics and freight movement.
Demographics
The surrounding trade area is characterized by a substantial workforce, strong median incomes, and robust commercial activity. Within three miles of the property, the population exceeds 95,000 with an average household income above $80,000. The Dallas-Fort Worth metroplex as a whole supports a large and diverse labor pool, essential for logistics and distribution operations.
Property Details
The subject property occupies approximately 3.8 acres with a modern distribution facility totaling 45,000 square feet. The building features clear height ceilings, multiple loading docks with dock levelers, ample trailer parking, and expansive truck courts designed for efficient operations and vehicle circulation. The site’s configuration allows for smooth ingress and egress of large commercial vehicles, optimizing operational efficiency.
Ownership is fee simple, granting the investor full rights to land and improvements, providing flexibility and security without the encumbrance of ground leases.
Lease Structure and Tenant Guarantee
The property is leased to FedEx Ground Package System, Inc. under an absolute triple net lease, with the tenant responsible for all property-related expenses including taxes, insurance, maintenance, and repairs. This structure offers the landlord a hands-off, passive investment with zero management obligations.
The lease term is a firm 10 years with no renewal options, providing a predictable income stream and investment horizon. Rental increases of 2.5% annually are built into the lease, delivering consistent income growth and protection against inflation.
FedEx Ground is a division of FedEx Corporation, a global leader in logistics and package delivery services. FedEx’s investment-grade credit rating and extensive national footprint offer unparalleled financial security for landlords and investors.
Tax Benefits and Bonus Depreciation
While industrial properties typically do not qualify for bonus depreciation on the building itself, investors may benefit from cost segregation studies allowing accelerated depreciation on certain components. Combined with the stable income stream, this provides tax efficiency and attractive after-tax returns.
Surrounding Area and Trade Drivers
Dallas is a major logistics hub with extensive transportation infrastructure, including Dallas/Fort Worth International Airport, the third-largest cargo airport in the U.S., multiple interstate highways, rail lines, and a large population base. The region supports robust industrial demand driven by e-commerce growth, supply chain expansion, and corporate relocation.
The property is located within an established industrial park surrounded by other logistics, warehousing, and manufacturing tenants, creating a synergistic environment. The area’s accessibility to major highways facilitates timely distribution throughout the Southwest and nationwide.
Investment Highlights
Buyer Profile and Financing
This asset is ideally suited for 1031 exchange buyers, institutional investors, REITs, and private equity seeking a stable, long-term net lease investment with minimal management. The fee simple ownership and absolute NNN lease guarantee strong lender interest, supporting competitive financing terms. Investors benefit from predictable cash flow, annual rent increases, and the security of a globally recognized tenant.
Conclusion
This FedEx ground distribution facility in the Dallas MSA offers a best-in-class net lease investment with long-term income stability and growth. Featuring an absolute triple net lease, corporate guarantee, 10-year lease term, and fee simple ownership on a large industrial parcel with superior transportation access, this asset represents a compelling opportunity for investors seeking passive, inflation-protected cash flow from a creditworthy tenant.
Qualified investors are encouraged to request the full offering memorandum, financial details, and acquisition process information.