Package delivery giant FedEx Corp. will more than triple the size of its Colorado Springs distribution center when it starts construction next month on a facility near the Colorado Springs Airport.
The 223,000-square-foot center at 125 Troy Hill Road, southeast of Powers Boulevard and Bijou Street, will employ about 80 people with additional workers added "as necessary to support increased demand for service," said Meredith Heighington Miller, a FedEx Ground spokeswoman in Pittsburgh.
The new center, which will serve much of eastern Colorado and is part of a nationwide expansion, is scheduled to open in July 2016 and will replace a 68,321-square-foot center about 2 miles south at 2050 Cygnet Heights, southeast of Fountain and Powers boulevards.
The expanded center will serve an area from Larkspur south to Midway and Florissant east to the Kansas border, Miller said. FedEx selected the location because of its access to major highways, proximity to customer distribution centers and ease of recruiting workers, she said. The existing center is leased from Monmouth Real Estate Investment Corp., a Freehold, N.J., real estate investment trust that owns 89 properties in 28 states.
The local center is part of a 10-year expansion by the company that has added 11 hubs, featuring advanced material-handling systems and more than 500 smaller facilities that were either expanded or relocated. FedEx announced plans in October to spend $1.2 billion this year on more than 70 major expansion projects. The expansions have allowed FedEx to accelerate ground delivery by a day or more in more than two-thirds of the nation and boost its delivery capacity, Miller said.
FedEx Ground will lease the new center from SunCap Colorado Springs LLC, a limited liability company set up by Charlotte, N.C.-based SunCap Property Group, which paid $2.15 million on Feb. 28 to Odessa, Texas-based ICA Properties for the 27.4-acre site. SunCap Colorado Springs borrowed $19.75 million to finance the project from Branch Banking & Trust Co. of Charlotte. Mike Helwege of Colorado Springs Commercial represented ICA Properties in the transaction, while Dallas-based Fischer & Co. represented FedEx.
SunCap Property Group has built about a dozen FedEx distribution centers in eight states in recent years.
A consultant representing FedEx's general contractor filed plans in December with the city's Land Use Review Division for the project, but another FedEx spokeswoman declined to comment at that time about whether the center was replacing another local facility and how many people it would employ.
Plans for the center showed enough parking for 455 passenger vehicles, 106 trailers, 11 tractors and 55 heavy-duty delivery vans, and loading bays for 52 tractor-trailers.
FedEx also operates data and software development centers in the Northgate business park, a shipping terminal in northwest Colorado Springs and five Print & Ship storefronts locally.
The company employs 325,000 worldwide and generates $47 billion in annual revenue.
Contact Wayne Heilman: 636-0234
Facebook Wayne Heilman