In early 2018, 13th Floor Investments began working alongside Fresenius Medical Care Holdings to develop a build-to-suit distribution facility in Knoxville, Tennessee for the company's distribution and logistics subsidiary, TruBlu Logistics. The lease will be guaranteed by Fresenius Medical Care Holdings which is a global company focusing on healthcare products and services and maintains an investment grade credit rating of Baa3. In addition to a strong corporate guaranty, 13th Floor negotiated an absolute NNN lease which minimizes any landlord obligations and responsibilities. This combination of a strong guaranty and landlord friendly lease structure creates a highly marketable investment. Shortly after breaking ground in 2019, 13th Floor entered into a forward sale with WP Carey to acquire the project for $66MM. The $20MM profit represented a 285 basis point spread, 25% of which was shared with the tenant as an incentive rebate.
The 614,00 square foot warehouse functions as a distribution hub to handle most product that is manufactured at TruBlu's existing manufacturing facility located approximately six-miles to the south. Fresenius consists of 591,000 square feet of warehouse space and 23,000 square feet of office space.
591,000 sq ft of Warehouse Space 23,000 sq ft of Office Space