Frito Lay Last Mile Distribution Center

6080 147th Street West, Apple Valley, MN, 55124, US

Description

Jones Lang LaSalle (“JLL”), as exclusive advisor to ownership, is pleased to offer for sale the fee-simple interest in the Frito-Lay Last Mile Distribution Center, a 117,600 square foot industrial facility located in the Minneapolis MSA (the “Offering” or the “Property"). Delivered in 2023 , the Property is custom-designed for Frito-Lay with modern, future-proofing features including high car and truck parking counts, a 32' clear height with ample loading positions, and a maintenance garage to service last mile delivery vehicles. In addition to prime physical quality, the Offering's long-term, growing cash flow stream is secured by the investment-grade credit profile of PepsiCo Inc. (Moody's: A1, S&P: A+), the parent company of the lease entity (PepsiCo Global Real Estate). Within a tight Minneapolis industrial market experiencing unprecedented tenant demand, the Frito-Lay Last Mile Distribution Center offers investors an opportunity to acquire a highly functional, modern industrial facility with a secure cash flow and unmatched tenant credit profile.

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Attributes

Building area net

10,925 m²

Occupancy

100%

Year built

2023

Land area gross

6.62 ha

WALT

6.2 years

Clear height

9.75 m

Tenants

Frito Lay

Media

Investment Highlights

Long-Term, Growing Cash Flow from Investment-Grade Tenant

PepsiCo Global Real Estate, Inc., a wholly-owned subsidiary of PepsiCo Inc., brings exceptional credit strength with premier ratings from Moody's (A1) and S&P (A+).
Lease Structure: Long-term lease initiated September 2023 under a landlord-favorable industrial triple-net (NNN) arrangement
Strategic Asset: Mission-critical last-mile distribution facility positioned to serve the greater southern Minneapolis metropolitan area, encompassing a population exceeding one million residents
Income Stability: Predictable cash flow growth supported by investment-grade tenant creditworthiness

Institutional Grade, Newly Constructed Last-Mile Logistics Facility

Superior Building Design: 32-foot clear height with exceptional dock density of 3.82 positions per 10,000 square feet positions the facility as best-in-class for last-mile logistics operations in the market
Operational Efficiency: Strategically designed loading configuration and ample vehicle parking ensure optimal distribution workflow and fleet management
Future Expansion Potential: Low floor-area-ratio (FAR) development provides significant opportunity for facility expansion or additional industrial building construction, enhancing long-term value and operational scalability
Purpose-built distribution center designed specifically for Frito-Lay operations, featuring rear and side loading capabilities, extensive truck and trailer parking capacity, and an integrated service garage for fleet maintenance.

Prime Location with Superior Workforce and Market Access

Market Coverage: Over one million residents within a 25-minute drive radius provides extensive last-mile delivery market penetration
Strategic Connectivity: Direct access via signalized, four-lane 150th Street to Interstate 35 corridor enables seamless distribution throughout the greater Minneapolis-St. Paul metropolitan area
Robust Labor Access: Deep talent pool of 160,000+ workers within 15 minutes, including 17.4% blue-collar workforce ideal for distribution and logistics operations

Strong Minneapolis Industrial Market Fundamentals

Average actual first year rents have increased 37.5% from 2017 to 2021, an average increase of 9.7% per year
Currently there is 0.9 square feet of availability for every square foot of industrial demand in the Minneapolis-St. Paul market.
Strong absorption for modern product, as development are currently 55% preleased at completion with a 100% occupancy rate 24 months following completion.