Corporate Guarantee (NASDAQ: TSLA – $1.09T Market Cap)
– Investment grade tenant rated ‘BBB’ by S&P and ‘Baa3’ by Moody’s.
– Tesla ranks #40 on the 2024 Fortune 500 list, capturing ~44% of the EV market share in the US.
– Tesla’s 2024 revenues exceeded $97B and they remain the world’s most valuable auto-maker.
Regional Hub & Flagship Rhode Island SSD Location | One of Largest Facilities on East Coast
– Opening for business in 2024, this 77k+ SF center is Tesla’s largest facility in Southern New England and their only location in Rhode Island.
– With the next closest Tesla location being 40+ miles away in Dedham, MA, this facility serves as the sales, service and delivery hub for the entire Providence, RI metro.
– The subject property was the winner of CoStar’s 2024 Lease of the Year (Providence) for economic impact, site revitalization, and job creation.
New 10-Year Lease | 10% Rental Increases Every Five Years | Minimal Landlord Responsibilities
– In 2024, the tenant signed a brand-new, 10-year lease with two, 5-year options periods to extend.
– The lease calls for scheduled rental increases of 10.00% every five years in the base term and throughout each option period.
– Tenant pays for all taxes, insurance, utilities and CAM. Landlord responsibilities are limited to repairs/replacement of roof and structure, and replacement (not repair/reseal) of parking lot.
Well-Below Market Rent for Average Tesla and Local Providence Market
– The average rent per square foot for a Tesla center nationwide is $25.71/sf. On the subject property, Tesla is currently paying a rental rate of $12.42/sf.
– This sample size included 33 different Tesla facilities nationwide (SSD and Collision) that have traded or been listed in the trailing 24-months.
– With Providence retail rents averaging $19.46/sf today, Tesla is paying a well-below market rate.
Dense Trade Area with Strong Traffic Drivers – 723k+ People in 10-Miles
– The asset sits right in between Providence (2-miles away) and Warwick (6-miles away), the two most populated cities in Rhode Island.
– The property is ideally situated just down the road from the Cranston Parkade, a 260+ SF Community Shopping center that is anchored by Stop & Shop and Burlington with a Lowe’s shadow-anchor.
– Tesla is strategically positioned with easy access into downtown via Interstate 95 (180k+ CPD), U.S. Highway 1 (23k+ CPD) and State Highway 10 (57k+ CPD).
