Listed by Matthews
$1,536,000
FedEx Freight - Hermantown (Duluth), MN
Details
APN 395-0010-09036
Property Type Industrial
Sub Type Warehouse
Square Footage 11,970
Net Rentable (SqFt) 11,970
Cap Rate 7.5%
NOI $115,200
Occupancy 100%
Tenancy Single
Brand/Tenant FedEx
Lease Type NNN
Lease Expiration 01/31/2030
Remaining Term 3.7
Rent Bumps Yes
Lease Options One, 5-Year Option
Price per SqFt $128
Broker Co-Op Yes
Year Built 1999
Acreage 5.490
Zoning BLM
Investment Type Net Lease
Tenant Credit Credit Rated
Occupancy Date 02/01/2000
Ground Lease No
Dock High Doors 19
7.50% Cap | CPI Based Increases | Recent Renovations
Marketing description
FedEx Freight is a dominant player in the Less-Than-Truckload (LTL) industry, posting an industry leading $9.4B in revenue in FY ‘24.
The facility is FedEx Freight’s only location in the Duluth (±280,000 residents).
The ±11,970 SF building sits on ±5.49 AC and comes equipped with 20 total doors.
The site recently received several recent renovations, notably to the parking lot, HVAC systems, and LED lighting systems.
Investment highlights
Industry Leading Tenant
- In December 2024, FedEx Corporation announced its intent to separate FedEx Freight from the broader FedEx enterprise, establishing FedEx Freight as a standalone publicly traded company. The separation is expected to be completed in 2026 and is designed to enhance FedEx Freight’s operational focus and efficiency as one of the dominant players in the less-than-truckload (LTL) industry. Operating from more than 350 locations across North America, FedEx Freight generated an industry-leading $9.4 billion in revenue in FY ’24.
Strategic FedEx Freight Hub
- This property serves as FedEx Freight’s only location in the Duluth MSA (Minnesota’s second-largest MSA, ±280,000 residents), making it a mission-critical hub for the company’s LTL operations in northern Minnesota. Strategically located near Duluth International Airport (DLH), downtown Duluth, and Interstate 35, the site provides seamless connectivity to Minneapolis and the broader Midwest.
Major Port City
- The Port of Duluth is the world’s farthest inland port and serves as the busiest port on the Great Lakes, handling over 35 million tons of cargo annually. The site’s proximity to the Port of Duluth gives FedEx Freight’s LTL operations fast and reliable access to a large amount of inbound and outbound goods.
Recently Upgraded Facility / Long Term Operating History
- The ±11,970 SF building sits on ±5.49 acres (±5.01% Coverage), features 20 total doors, and has undergone several recent renovations, including upgrades to the parking lot, HVAC systems, and LED lighting systems. FedEx Freight has a long-standing operating history of over 20 years at the facility.
Listing Contacts
Listed by Matthews
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$115,200.00
$9,600.00/mo
Valuation Metrics
0
DSCR
7.5%
Cap Rate
7.5%
ROI
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