OFFERING SUMMARY:

PRICE: $6,688,000
CAP RATE: 7.00%
BUILDING SIZE: 49,997 Sq Ft
NOI: $468,152
YEAR BUILT | RENOVATED: 1968 | 2021
LOT SIZE: +/- 4.11 Acres

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HIGHLIGHTS:

  • Investment Grade Corporate Guarantee – Tesla, Inc. (NASDAQ: TSLA) has quickly become one of the largest companies in the world. In March of 2023, Tesla was upgraded by Moody’s to investment grade status ‘Baa3’ and was also raised to an S&P ‘BBB’ rating in October of 2022. As of December 2023, Tesla had a $755.26 billion market capitalization which ranked them #7 on the list of largest companies in the world by market capitalization. With 2022 revenues of $81.46 billion and 16 consecutive months of profitability, Tesla ranks #50 on the 2023 Fortune 500 list.
  • Long-Term Lease with 2.00% Annual Rent Increases – In 2021, Tesla entered into a brand-new, 10-year double net lease. The lease features 2.00% rental increases annually, providing an excellent hedge against inflation. Following the initial 10-year term, there are two, five year renewal options with the 2.00% annual rent increases continuing throughout both options periods.
  • Strategic Location Servicing Southeast Virginia – This is a strategic location for Tesla, serving all of Norfolk and major surrounding cities including Virginia Beach, Chesapeake, and Newport News. Virginia Beach, Chesapeake, Norfolk, and Newport News were ranked 4 of the top 5 most populated cities in all of Virginia in 2023 (according to World Population Review), accounting for more than 13% of the entire state’s
    population. Servicing all of Southeastern Virginia, the next closest Tesla Dealership and Service Center is located over 100 miles away in Glen Allen, VA.
  • Densely Populated Area & Highly Trafficked Corridor – The subject property is situated within a densely populated marketplace, with more than 630k people residing within a 10-mile radius. With excellent
    frontage on Military Hwy and multiple access points to the property, the site benefits from traffic counts exceeding 24k Vehicles Per Day.
  • Well Below-Market Rents & Priced Below Replacement Cost – Occupying 49,997 SF on 4.11 acres, this low price point Tesla boasts very modest rents at $9.36/SF with the average market rent PSF at $18.49/
    SF. This large site with ample parking makes this location an ideal one for Tesla Sales, Service and Delivery.

EXCLUSIVELY LISTED BY:

DOMINIC SULO
Senior Managing Director Investments
Senior Director, Net Lease Properties Division
(630) 570-2171
dominic.sulo@marcusmillichap.com

DREW ANTONIOU
Senior Associate
(630) 570-2185
drew.antoniou@marcusmillichap.com

VIRGINA BOR
Brian Hosey
Lic #0225247494