McKesson Rickenbacker Logistics Center_Property for Sale

4448 Rickenbacker Pkwy E, Groveport, OH, 43125, US

McKesson Rickenbacker Logistics Center

Asset description

Jones Lang LaSalle ("JLL"), as exclusive advisor to ownership, has been retained to market for sale the fee-simple interest in McKesson Rickenbacker Logistics Center (the "Offering" or the "Property), a 429,188 square foot, cross-docked distribution facility located at 4448 Rickenbacker Pkwy East in Columbus, OH. McKesson Medical-Surgical Inc., a wholly-owned subsidiary of McKesson Corporation, signed a long-term, build-to-suit lease at the Property with 3.5% annual rent escalations and the option to expand the Property by 85,838 square feet. Evidenced by the tenant's significant investment into this fully air-conditioned, FDA standardized facility, McKesson Rickenbacker Logistics Center offers investors a highly bolted-down, long-term tenant and a growing income stream within a Class A facility in Columbus' top industrial submarket.

Located just southeast of the Rickenbacker International Airport, McKesson Rickenbacker Logistics Center represents an exceptionally well-located distribution facility with immediate access to one of the country's largest cargo-dedicated airports and the Norfolk Southern- Rickenbacker Intermodal Terminal. Via US-23 S and Alum Creek Dr., the Property provides McKesson with direct highway access to I-270, I-70, and I-71. Southeast Columbus, specifically the Rickenbacker submarket, remains the MSA's most sought-after logistics location and was chosen by McKesson because of its outstanding transportation infrastructure.

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Attributes

Building area net

429,188 sf

Year built

2024

Tenants

McKesson Medical-Surgical, Inc.

Media

Investment highlights

CLASS A LOGISTICS FACILITY WITH EXPANSION CAPABILITY

• McKesson Rickenbacker Logistics Center is a new construction, cross-dock distribution facility with modern features, limiting future capital requirements.

• Totaling 429,188 square feet, this Class A building features 40' clear height, full warehouse air conditioning, and fully-circulating truck courts.

• Additionally, McKesson has an 85,838 square foot expansion option which, if exercised, would substantially boost investor yields.

HIGH BOLT-DOWN COSTS THROUGH TENANT INVESTMENT

• To ensure the facility meets McKesson's specific operational requirements, the tenant is investing a total of ~$18.6M ($43/SF) into the Property. Among other improvements, this investment will specifically bring the facility up to FDA standard specifications to handle medical supplies at the Property.

INSTITUTIONALLY OWNED POCKET OF RICKENBACKER SUBMARKET

• The Property is located directly adjacent to the Rickenbacker International Airport, one of the world's largest cargo-dedicated airports.

• This location has attracted the investment of both institutional capital and blue-chip tenants.

• The Property benefits from a 15-year, 100% tax abatement on vertical improvements, materially reducing McKesson's gross operating costs.

HIGH-GROWTH COLUMBUS INDUSTRIAL MARKET

• Demand has pushed market rents to grow over 60% since 2016 at an average annual growth rate of 6.50%.

• Since 2019, the Columbus market has posted 51 MSF of positive net absorption and 2024 marked the region's 9th consecutive year of positive net absorption.

• While 19 MSF of product was delivered to the market in 2023, only 2.8 MSF of product is under construction today and 66% of this pipeline is pre-leased. A limited development pipeline bodes well for existing product and continued rent growth in the market.