Gates home of FedEx sells for $18+ million

Kevin Oklobzija//March 30, 2022//

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The Manitou Road property that is home to the FedEx Ship Center was sold for $18.792 million (photo by Kevin Oklobzija).

A California real estate investment firm with an emphasis on debt-free 1031 Exchange Delaware Statutory Trust investments has completed the purchase of the FedEx Ship Center on Manitou Road for $18.792 million.

Cove Capital Investments, LLC, of Torrance, Calif., through Cove Net Lease Distribution 53 ST LLC, bought the property and 111,741-square-foot facility from a a series of LLCs owned by NAI James E. Hanson, a New Jersey-based commercial real estate firm. The transaction was filed with the Monroe County Clerk today.

FedEx has operated at the location at 2580 Manitou Rd. in Gates since the building opened in 1997 and in 2018 signed an early lease extension for an additional 10 years, with a 2.5 annual increase in rent, according to Barr & Bennett Net Leased Investments.

The lease with FedEx includes two five-year options with identical increases in rent.

Cove Capital Investments frequently buys properties where FedEx, Walgreens and Amazon are tenants. The investment firm properties in 25 states.

The Manitou Road property has sold twice since February of 2006; for $8.963 million in 2006 by a Portland, Maine, firm to Caleast Nat City Stations, LLC of Annapolis Maryland, and then for $13.892 million in 2019 to the CPI Rochester LLCs affiliated with NAI James E. Hanson.

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