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Confidential Offering Memorandum

NN FedEx Freight 300 Bartlett StreetNorthborough, MA 01532

Representative Photo

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.

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Investment Summary 03

Property Overview 05

Market Overview 09

Tenant Overview 12

JLL Contacts 15

Actual Property

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Investment SummaryFedEx Freight – Northborough, MA

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.Actual Property

FedEx Freight | Northborough, MA

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4

Investment Summary

JLL is pleased to offer for sale the fee-simple interest in a corporately-guaranteed (FedEx Corp.), FedEx Freight (the “Property” or “Asset”) located in Northborough, Massachusetts.

The Property is a distribution warehouse that is tenanted by FedEx Corporation (d/b/a FedEx Freight) on a NN lease with 9.8 years of lease term remaining. The Property is located in an established industrial corridor with other national tenants including Dow Chemical, SolarCity and Ken’s Foods. Strategically positioned three miles south of the Interstate 495 – Interstate 290 interchange and four miles north of the Interstate 495 – Interstate 90 interchange, the Asset benefits from its close proximity to some of Massachusetts’ busiest highways. TRANSFLO Westborough Terminal railway is also in close proximity, located approximately four miles from the Asset. The offering presents the opportunity to acquire a distribution warehouse in a strong location with an advantageous lease structure.

PROPERTY SUMMARYINVESTMENT HIGHLIGHTS

• Northborough location has direct access to half a dozen major markets in Massachusetts, Connecticut, Rhode Island and New Hampshire

• Close proximity to TRANSFLO Westborough Terminal railway, a leader in trans loading bulk commodities between railcars and trucks

• Well-positioned three miles south of the Interstate 495 – Interstate 290 interchange and four miles north of the Interstate 495 – Interstate 90 interchange

• There are 9.8 years remaining on the double-net lease, with minimal landlord responsibilities

• FedEx Corporation has investment grade tenancy with a Moody’s Credit Rating of (Baa2/Stable) and S&P Credit Rating of (BBB/Stable)

Address 300 Bartlett Street, Northborough, MA 01532

NOI $1,124,114Remaining Lease

Term 9.8 years*

Product Type Distribution Warehouse

Tenant FedEx Corporation (d/b/a FedEx Freight)

Lease Type NN

Year Built 2012*as of May 2018

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved.

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Property Overview FedEx Freight – Northborough, MA

Actual Property



Property Overview

The Property is strategically positioned in close proximity to Interstate 495, Interstate 290 and Interstate 90, some of the area’s busiest highways. DowntownBoston is only 27 miles east of the Asset and a major railway terminal is only four miles south of the Asset.

BUILDING SPECIFICATIONS

Address 300 Bartlett Street, Northborough, MA 01532

Year Built 2012

Ownership Interest Fee-simple

Parcel Size 25.01 acres

Property Size 31,521 square feet

Tenant FedEx Freight, Inc.

Lease Type NN

LL Responsibilities Roof, Structure, Foundation and Utility Hookups

Lease Expiration 1/31/2028

Lease Term Remaining 9.8 years (as of 4/1/2018)

Remaining Renewal Options 2, 5-year options

Net Operating Income $1,124,114

NOI PSF $35.66

Rental Increases 11.6% in First Option; 2.0% in Second Option



Property Overview

Site Plan



Property Overview

Property Photography


Market Overview FedEx Freight – Northborough, MA



Market Overview

Northborough, MA – Location Highlights

Northborough, MAThe Town of Northborough is a suburban community which offers classic New England charm while providing access to educational opportunities, a mix of retailestablishments and restaurants, a variety of housing options, and a stable and prospering business environment. These attributes make Northborough anattractive community in which to live, shop and work. Because Northborough is centrally located and in close proximity to I-495, I-290 and the Mass Pike I-90, it isa desirable area for travelers heading to Boston, New Hampshire, Rhode Island and Connecticut. In addition to providing the setting for several working farms,Northborough is also host to a burgeoning research and development-oriented industrial park, but the town serves primarily as a residential area to Boston andWorcester Commuters.

Various national companies have industrial and office locations in Northborough, and these companies are some of the largest employers in Northborough andWorcester County. The largest employers include Wegmans, Worcester Polytechnic Institute, Aspen Aerogels, Abbott-Action and FedEx.

• Northborough is centrally located with ready access to half a dozen major marketsin Massachusetts, Connecticut, Rhode Island and New Hampshire, with the Assetin close proximity to major highways and railway terminals. Interstate 495,Interstate 290, Interstate 90 and TRANSFLO Westborough Terminal railway are allwithin four miles of the Asset.

• The Asset is located in an established industrial corridor that includes some ofNorthborough’s largest employers, including Dow Chemical, SolarCity and Ken’sFoods.

Northborough Demographic Snapshot

1-Mile 3-Miles 5-Miles

Total Population 731 29,540 84,215

Total Households 256 11,091 31,775

Average Household Income $157,471 $126,933 $127,472

Median Household Income $108,197 $99,576 $100,231



Market Overview


Tenant OverviewFedEx Freight (FedEx Corp.)


FedEx FreightFedEx Freight offers priority and economy less-than-truckload (LTL) freight shipping.With extensive coverage throughout the U.S. (including Alaska and Hawaii), Canada,Mexico, and Puerto Rico as well as service to the U.S. Virgin Islands, FedEx Freightprovides (LTL) choices based on customers’ shipping needs.

FedEx Freight history dates back to 1998 when Federal Express Corp. acquired CaliberSystem and created FedEx Corp. Then in 2001, FedEx Corp acquired AmericanFreightways and created FedEx Freight to offer convenient shopping for LTL customerswho require top quality, highly reliable freight service. In 2006, FedEx Corp. acquiredWatkins Motor Lines, a leading provider of long-haul LTL services that got its start in1937. Watkins was rebranded as FedEx National LTL and FedEx Freight Canada. In2011, FedEx National LTL merged with FedEx Freight, and the company launched its twoservice offerings at all lengths of haul across its U.S. network: FedEx Freight Priority andFedEx Freight Economy.


Tenant Overview


FedEx CorporationFedEx Corporation (NYSE: FDX) is the world’s largest express delivery company. Headquartered in Memphis, TN, it is made up of a network of subsidiaries that providedelivery, e-commerce and business services. The subsidiaries are independently operated and collectively managed under the FedEx brand and include FedEx Freight,FedEx Express, FedEx Ground, and FedEx Services. The company generated total revenue of $60.3 billion in fiscal 2017 and employed more than 300,000 peopleglobally.

With the value of global trade now at more than $18 trillion, FedEx has continued transforming its business to better align with projected worldwide population andeconomic growth. The acquisition of numerous transportation companies allows FedEx to directly serve specific markets and provide better service to our customers.FedEx Trade Networks is now one of North America’s largest-volume customs entry filers and a leader in international ocean and air freight forwarding and tradefacilitation.


Tenant Overview

Tenant OverviewCompany: FedEx Corporation

Year Founded: 1971

Headquarters: Memphis, TNOwnership Type: Public (NYSE: FDX)Industry: Delivery & Freight ServicesSector: ServicesNumber of Employees: 331,000+Credit Rating (Moody’s): Baa2 / StableCredit Rating (S&P): ‘BBB’ / StableAnnual Revenue (YE 5/31/2017): $60.32 BillionMarket Capitalization (April 2018): $63.95 BillionTotal Assets (YE 5/31/2017): $48.55 BillionTotal Debt (YE 5/31/2017): $32.48 BillionWebsite: www.fedex.com


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JLL Contacts

4 Park Plaza | Irvine, CA 92614www.us.jll.com/capitalmarkets

Copyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from relianceon this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Contact Information

ADVISORS

Matthew BerresExecutive Vice PresidentJLL Capital Markets+1 949 885 [email protected]

Eric ClineSenior AnalystJLL Capital Markets+1 312 228 [email protected]

Michael BowerAnalystJLL Capital Markets+1 312 228 [email protected]

Eric SuffolettoSenior Vice PresidentJLL Capital Markets+1 617 316 [email protected]

http://www.us.jll.com/capitalmarkets

mailto:[email protected]




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