CENTRAL POINT — A massive trucking warehouse leased by FedEx Ground adjacent to the new Costco has sold for $15.9 million.

Wallace Ching, a real estate investor from Honolulu, Hawaii, acquired the 91,711-square-foot terminal from BLT Enterprises, a Santa Monica, California, firm, which developed the facility on 8.3 acres for $7.26 million in 2009. A 32,614-square-foot addition was completed in October 2015, bringing the building to about 124,000 square feet.

Ching, who owned industrial property in Hawaii, said Thursday he was looking for a 1031 exchange, which allows taxes to be deferred on the exchange of certain properties. A California broker suggested he take a look at a terminal in Southern Oregon.

He found the location and lease agreement to his liking when he visited the Rogue Valley last spring and again in July.

"I always had heard that Oregon was a rainy state," he said. "It was beautiful."

Wade Six, a Medford commercial real estate broker who operates in five Western states, said the pricetag falls in line with the current market.

"The market is on fire," Six said. "You're talking about a single tenant with a long-term lease and good credit. I've sold something similar to this where people didn't event visit. When people buy things well beyond where they live, they're buying strength of lease and location."

Six wasn't involved in this particular deal, but said he suggested the 544 Federal Way property to three groups that passed. The site is west of Table Rock Road, off of Hamrick Road.

"My pitch was that it's near the airport and near two strong freeway interchanges," Six said. "We're on I-5, which means we're truck-centric. It's where you pick-up triple (trailers) and drop off doubles, and that's not going to go away."

Investors take first-year net operating income and divide it by the asking price to gauge their interest. The Federal Way property, first offered for $16.278 million, was on the high end of the sweet spot, Six said.

"There is a compelling reason why the sales price was close to what it went to market for," he said. "Location and long-term leases lead to higher price per square foot, and you're working with a strong credit-worthy tenant. Trucking will survive as long as there is a need for third-party delivery. It's a good bet going forward."

Ching said he found the Rogue Valley affordable for a number of reasons. A friend retired to Medford recently after checking out Florida and Texas.

"He mentioned I should consider Medford," Ching said. "It just happened we were looking for an exchange property; Central Point seems to be a progressive city."

He said he knew Hawaiians who had retired to Southern Oregon because health care and skilled nursing homes were less expensive.

The building is fully leased to FedEx Ground, the fastest-growing division of FedEx Corporation.

Bernard Huberman, founder and president of BLT Enterprises, said the facility was developed from the ground up in 2009 as a build-to-suit project for FedEx, one of the largest small-package ground carriers in North America. BLT expanded the site two years ago to meet the region’s growth.

“This asset’s steady income stream coupled with the explosive growth throughout the region made this an ideal time to sell,” Huberman said in a release.

David Weinberg, Paul Kerber and Adam Lewis of Marcus & Millichap represented BLT Enterprises as the seller. Barbara Kreis of Sperry Van Ness represented Tomchi Oregon, LLC as the buyer in the transaction.

— Reach reporter Greg Stiles at 541-776-4463 or business@mailtribune.com. Follow him on Twitter at www.twitter.com/GregMTBusiness or www.facebook.com/greg.stiles.31. Listen to his podcast at mailtribune.com/podcast.