Federal Express Ground Distribution Facility – Chantilly, Virginia

This property is a 63,389 square foot distribution center strategically located in an industrial park adjacent to the Dulles International Airport outside of Washington DC. The property is leased to FedEx Ground Package Systems, Inc. under a ten-year lease with two additional five-year options. The property was purchased on a cap rate of 7%.

We secured a 71% mortgage at an interest rate of 6.2% amortized over 30 years. After deducting management fees, principal and interest payments and replacement reserves, the cash-on-cash return is 5.32%. The effective rate of return is 8.35%.

The upside potential of this property is extremely strong because of its location adjacent to the Dulles International Airport outside of DC.

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