Fedex Ground is building a new $56 million, 140,000-square-foot distribution center along Long Island City’s Borden Avenue. The new facility is being developed by Charlotte-based SunCap Property Group, which also recently completed a 142,139 square foot package sorting facility for the company in Orangetown, N.Y.
Fedex Ground spokesman David Westrick told The Commercial Observer that this most recent project will be owned by SunCap through a joint venture with Lexington Realty Trust, a New York-based REIT that invests in commercial properties net leased to major corporations.
“The new facility is part of a nationwide network expansion to boost daily package volume capacity and further enhance the speed and service capabilities of the FedEx Ground network,” Mr. Westrick said in an email. “Since 2005, the company has opened 11 new hubs featuring the most advanced material-handling systems and expanded or relocated more than 500 local facilities.”
A call to Lexington Realty Trust wasn’t returned in time for publication. Lexington owns a number of net-leased facilities in New York state—for tenants that include Corning, Kmart and Pathmark Stores. However, SunCap Property Group founding partner Flint McNaughton told The Commercial Observer that it has other Fedex net-leased facilities already in place as well, in areas like Windsor, C.T. with additional facilities in the works. “At a high level, Lexington Realty Trust is our capital partner,” Mr. McNaughton said, though he declined to give specifics about the financing for the Long Island City location.
The Orangetown, N.Y. Fedex sorting facility SunCap developed included an additional 18 acres beyond the 24 the shipping giant needed. SunCap shouldered the investment risk inherent in purchasing those acres and then delivered, according to a 7-month schedule required by Fedex.