FedEx distribution center sold for $20.9 million

A Canadian real estate investment group has purchased the new FedEx distribution facility in Baton Rouge for $20.9 million.

Pure Industrial Real Estate Trust of Vancouver bought the nearly 17.7-acre site at 10800 S. Reitz Ave. in a deal that was filed Friday with the East Baton Rouge Clerk of Court’s office. The seller was Scannell Properties of Indianapolis.

Scannell is serving as the developer and architect for the distribution facility, which is currently under construction. Scannell bought the land for the site in March for nearly $5.8 million.

According to a prospectus PIRET sent out, the 176,374-square-foot office and warehouse facility is set to open in February. It will replace the 24,440-square-foot facility on Harrell’s Ferry that has been FedEx’s local home since 2008.

FedEx will have a 10-year lease on the property, with an option to renew.

The Baton Rouge property was part of a portfolio of eight FedEx facilities PIRET purchased for $135.5 million. The portfolio, which included existing properties in Newton, North Carolina and West Palm Beach, Florida, and facilities under construction in Austin and San Antonio, Texas, is PIRET’s first entry in the U.S. industrial real estate market.