Stewart, Morris and Haggerty of Cronheim finance $10 million

Andrew Stewart, Dev Morris and Patrick Haggerty of Cronheim Mortgage have arranged acquisition financing of $10 million for a FedEx Supply Chain Services warehouse/distribution center. The loan, which represents 70% loan to cost, has a five-year term amortized over 20 years at an interest rate of 6.25%. The subject property, built in 1994, is 487,670 s/f warehouse/distribution facility that serves as a key component in the FedEx Critical Inventory Logistics System. FedEx Supply Chain Services is a subsidiary of FedEx Corp. The property was originally also tenanted by Nike; FedEx took over the balance of the building after Nike vacated. There is a payment in lieu of taxes (PILOT) program in place at the subject, which helps reduce the tenant's occupancy cost. This gives FedEx a cost advantage to lease this over competing properties. Fed Ex has 31 facilities in the city and is one of the largest employers in the city with over 30,000 employees. The subject facility is located at the intersection of U.S. Hwy. 78 and Tuggle Rd., three miles southeast of the Memphis International Airport. The Memphis International Airport has been ranked as the busiest cargo airport in the world since 1992 and is home to FedEx's world cargo hub, which handles 400 flights daily. The Subject is located less than one mile from BNSF Railway's Tennessee Yard intermodal facility. The BNSF Railway moves more intermodal freight traffic than any other rail system in the world and is currently undertaking a $200 million, 150-acre expansion to the Tennessee Yard intermodal facility. This is the second major FedEx facility that Cronheim has recently financed, as they arranged a note acquisition of $103.5 million where the underlying collateral was three corporate headquarters facilities, including FedEx's 210-acre, four-building campus located adjacent to the Memphis Airport. The loan was acquired in a pari-passu partnership by three of Cronheim's correspondent investors for which Cronheim acts as servicer.