Developers building new FedEx facility next to Detroit Metropolitan airport

A joint venture that’s been active in industrial and warehouse development has quietly started a new $423 million project at Detroit Metropolitan Airport in Romulus.

Dallas-based Hillwood Enterprises LP and Detroit-based Sterling Group have kicked o construction on a new consolidated building for FedEx Corp. slated to be about 250,000 square feet at the southeast side of the airport.

An electronic presentation prepared by FedEx advisers Kroll LLC for the city of Romulus says that the Memphis-based freight and transportation company is consolidating two of its facilities because of a Federal Aviation Administration-mandated taxiway realignment plan causing the loss of a McDonnell Douglas MD-11 aircraft gate as well as capacity con- straints at its existing space. e 12-page presentation says FedEx would enter into a 30-year lease valued at $1.1 billion over its term in a 302,613-square-foot building and maintain 380 employees with an average wage of $25 per hour. Randy Wimbley, a spokesperson for the Wayne County Airport Authority, said it is leasing the land to FedEx.

An executive for Sterling Group did not respond to a text message seeking comment last week. e presentation from Kroll, based in New York City, says FedEx has three facilities on the airport property: A 71,000-square-foot inbound package sorting and vehicle maintenance facility, which is being consolidated; an 81,000-square-foot outbound package sorting facility, which is also being consolidated; and a 56,000-squarefoot heavyweight freight sorting facility, which will remain unchanged. e construction cost includes both the price tag for building the new facility ($328 million, including soft costs and nancing costs); as well as new equipment, furniture, vehicles and other expenses ($95.4 million).

Construction is expected to wrap up in Q1 2025, the document says.

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