Listed by Colliers - Royal Oak/Detroit, Michigan
$9,800,000
FedEx Express Regional Distribution Center
Details
APN 22-00-15-2-001-002.004
Property Type Industrial
Sub Type Distribution
Square Footage 90,465
Cap Rate 6.00%
NOI $588,022
Occupancy 100%
Tenancy Single
Brand/Tenant Federal Express Corporation
Lease Type NNN
Lease Term 10
Lease Expiration 04/29/2037
Rent Bumps Yes
Lease Options 1
Price per SqFt $108
Year Built 1997
Acreage 11.000
Parking Spaces 110 spaces
Parking per 1,000 SqFt 1.22
Lease Commencement 08/25/1997
Ceiling Height 30'
Dock High Doors 30
4300 Coalburg Road, Birmingham, AL 35207-1641
Marketing description
Raymond Jonna of Colliers is pleased to exclusively offer for sale the FedEx Express Distribution Facility located at 4300 Coalburg Road, Birmingham, Alabama — a 90,465 square foot net leased industrial distribution center 100% occupied by Federal Express Corporation (S&P: BBB / Moody's: Baa2), a wholly owned subsidiary of FedEx Corporation (NYSE: FDX).
The property presents an exceptional opportunity to acquire a missioncritical distribution hub backed by one of the world's most recognized logistics companies, with a freshly executed 10-year lease extension, contractual rent increases, and nearly three decades of continuous tenant occupancy.
The tenant recently executed the Fourth Amendment to the lease in March 2026, extending the term through April 30, 2037 — providing a new buyer with approximately 11 years of investment-grade, net leased cash flow from day one.
The offering is priced at $9,800,000, representing a 6.00% capitalization rate.
Investment highlights
- 90,465 SF FedEx Express Regional Distribution Center on 11 Acres
- Recently executed 10-year lease extension through April 2037 with approximately 11 years remaining
- Mission-critical heavy freight distribution hub serving the greater Birmingham market
- Net leased structure with minimal landlord responsibilities
- Features 30' clear height, 30 dock doors, and 4 drive-in doors
- Includes 110 parking spaces and 51 trailer parking spaces
- Standing seam steel roof system installed in 2012
- Strategic Birmingham location with access to Interstates 20/59, 65, and 22
- Freshly Executed 10-Year Lease Extension (11 Years Remaining) Federal Express Corporation executed the Fourth Amendment to the lease in March 2026, committing to a new 10-year term commencing May 1, 2027 through April 30, 2037.
- Investment-Grade Credit Tenant - FedEx Express (S&P BBB / Moody's Baa2)
- The tenant on the lease is Federal Express Corporation, the core operating subsidiary of FedEx Corporation (NYSE: FDX). FedEx Corp is a Fortune 50 company with over $90 billion in annual revenue, approximately 400,000 employees worldwide, and operations spanning more than 220 countries and territories. FedEx Express invented the express delivery industry in 1973 and remains the global market leader.
- 28 Years of Continuous Occupancy - Mission-Critical Facility
- Federal Express Corporation has occupied this facility continuously since the original lease was executed on August 26, 1997. Over the past 28 years, FedEx has renewed and extended the lease through four separate amendments, each time reaffirming the strategic importance of this location to its Birmingham-area distribution operations. The building serves as a FedEx Air Freight Center, handling heavy shipments (over 150 lbs) for the greater Birmingham metropolitan area. This deep operational entrenchment, combined with the specialized infrastructure (51 trailer parking spaces, 110 auto parking spaces, dock-height loading), makes tenant relocation extremely unlikely and cost-prohibitive.
- Built-In Initial Term Rent Increase
- Base rent is $588,022 at the commencement of the extended term (May 1, 2027), and increases an additional 7.7% to $633,255 beginning May 1, 2032.
- Net Lease Structure with Minimal Landlord Obligations
- The tenant is responsible for all property operating expenses including utilities, interior maintenance, HVAC and mechanical systems, landscaping, property insurance, and property tax reimbursements. The landlord retains responsibility for building roof, structure, and parking lot structural.
- Renewal Option Extends Income Visibility to 2042
- Renewal rent is set at the greater of (a) the annual base rent during the final year of the extended term or (b) the Fair Market Value at the time of renewal, providing a built-in floor that protects the landlord from downside while allowing the tenant to remain in place through 2042.
Listing Contacts
Listed by Colliers - Royal Oak/Detroit, Michigan
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$588,022.00
$49,001.83/mo
Valuation Metrics
0
DSCR
6%
Cap Rate
6%
ROI
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