Project Description

FedEx Ground Package System, Inc.

Property Description:

The project was a build-to-suit and consisted of the construction of a one-story industrial facility comprised of 225,198 SF and 100% leased to FedEx Ground Package System, Inc. for a term of ten years in Stratford, Connecticut. Constructed in 2016 to the highest institutional standards, the facility features 61 dock-high doors, 7 drive-in doors, 23’ clear height, and 3.6% office finish. It is located on 28.20 acres at the intersection of Lordship Boulevard and CT Route 113 approximately one mile from highway access via Interstate 95 at Exits 30 and 31, and one mile from airport access via Igor I Sikorsky Memorial Airport.

Mission Critical Nature:

The facility in Stratford, CT is a spinoff, meaning that FedEx Ground Package System, Inc. had an existing facility in the area but due to shipping demand, it requires the new facility in addition to the existing facility. The site located in Stratford is the only site within sixty miles of the tenant’s targeted area that was deliverable within one year.  This specific parcel was chosen as it is one of the last sizeable parcels remaining in a highly dense residential area.  The facility is also adjacent to the Igor I Sikorsky Memorial Airport.  Furthermore, FedEx invested 25% of the cost of the building in its custom welded in place conveyor equipment. This equipment is critical to the tenant’s operations and each site is specifically chosen to ensure that such equipment will run efficiently and effectively in each facility.  FedEx went through a period where they built facilities with expansion capacity to accommodate growth; but given recent trends and timing issues managing through an expansion, FedEx has concluded that developing “full phase” properties are the optimal way to manage growth.  The “full phase” properties are sized based out of operating 60-70% of full capacity with expansion capacity fully built into the initial economics.  The property in Stratford was a full phase development.