Corporate Guarantee (NASDAQ: TSLA – $838.8B Market Cap)
– Tesla, Inc. corporately guarantees this lease with a Moody’s investment grade status of Baa3 and an S&P global investment grade rating of BBB.
– Tesla is one of the world’s most valuable companies and remains the world’s most valuable automaker with a market capitalization of more than US $838.8B (Oct 2024).
– Tesla has ranked as the world’s bestselling battery electric passenger car manufacturer, with an 18% market share globally and 44% market share within the U.S.
Recent 5-Year Option Renewal with no Concessions
– Tesla recently exercised their first option period, now extending their lease for an additional 5-years and ending in 2029.
– The lease features 10.00% rental increases every five years, providing an excellent hedge against inflation in the future.
– There are two, five-year options remaining to renew the lease.
One of Two Tesla Locations in the Pittsburgh Metropolitan Area
– The next closest Tesla facility is 26 miles away in Bridgeville, PA.
– This facility serves as the sales and service hub for the entire northern Pittsburgh marketplace.
Extremely Affluent Pittsburgh Sub-Market ($204,000+ AHHI in 3-Mile)
– The subject property is just 17 miles from downtown Pittsburgh, which is the 2nd largest metro area in Pennsylvania with approximately 2,300,000+ residents.
– The five mile area surrounding the property has seen excellent growth in the population and number of households of 19% and 21% since 2010, respectively.
– Tesla is situated along Perry Hwy, which sees daily traffic counts exceeding 18k+ VPD.
Dense Trade Area with Strong Traffic Drivers
– The area features many traffic drivers such as the Allegheny Health Network’s Wexford Hospital (160-beds), The Keystone Summit Corporate Park (573k+ SF of office space) and Thorn Hill Industrial Park (925-acre business park with 100+ companies).
– Strategically positioned along the area’s “automotive row”, Tesla sits on the same thoroughfare as other prominent car dealers like Bentley, Maserati, Land Rover, Lexus, Volvo, Mazda, Acura, Buick, GMC, Hyundai, Kia and more.
– The property also benefits from traffic flow extending from the Cranberry Mall and Cranberry Commons which features an extensive lineup of national tenants including: Costco, Walmart Supercenter, Home Depot, Target, Lowe’s, Kohl’s, Dick’s Sporting Goods, Giant Eagle, ALDI, Best Buy, and many more.
