A national real estate investment firm based in New Jersey has acquired the FedEx Corp. facility in Hamburg, paying $35.1 million for the 49-acre property.
Monmouth Real Estate Investment Corp., one of the oldest publicly traded real estate investment trusts in the country, completed its purchase of the 338,584-square-foot industrial building at 3779 Lake Shore Road on Tuesday, according to property records filed with the Erie County Clerk's Office.
The property is leased to FedEx Ground Packaging System Inc. for 15 years, ensuring a steady tenancy for the Freehold, N.J.-based firm.
Kansas City-based Jones Development Co. built the $51 million distribution facility, which opened last year and is capable of handling 15,000 packages an hour. It was constructed for Memphis-based FedEx on part of the former Bethlehem Steel Corp. property near the intersection of Route 5 and Bayview Road, just south of the Ford Motor Co. Buffalo Stamping Plant.
The facility is part of a nationwide network expansion by FedEx, which has added 11 major hubs and expanded 500 other facilities since 2005 to boost its daily package capacity and speed up processing, in response to a significant increase in its shipping business.
Monmouth President and CEO Michael P. Landy announced the acquisition deal last fall, calling it a "a strategically vital outpost for FedEx" that would "handle cross-border shipments and custom clearing with Canada."
Monmouth specializes in single-tenant industrial properties with long-term leases. The company owns 100 properties in 30 states.