Corporate Guarantee (NASDAQ: TSLA – $1.09T Market Cap)
– Investment grade tenant rated ‘BBB’ by S&P and ‘Baa3’ by Moody’s.
– Tesla’s 2024 annual revenues exceeded $97B and they remain the world’s most valuable auto-maker.
Recent Expansion & Early Extension Showing Commitment to Site
– In 2023, Tesla expanded their footprint at the subject property by leasing an additional 32,000 SF (now 54,134 SF total) and at nearly double the rental rate.
– At the time of the expansion, Tesla also did an early 10-year extension on their existing lease two years prior to expiration.
Flagship Location for Tesla in CT – One of Two SSD Facilities in the State
– Opening for business in 2013, the Milford facility was the first and original location for Tesla in the state of Connecticut.
– The next closest location is 34 miles away in Stamford, CT, so this facility serves as the sales and service hub for the entire New Haven/Bridgeport markets.
Rare Annual Rent Increases with Minimal Landlord Responsibilities
– Tesla’s leases both call for 2.50% annual rent increases and Shoe Mart’s rent increases by 2.00% annually.
– Tesla pays for 100% of real estate taxes and insurance, and 90% of CAM.
Well-Below Market Rent for Tesla ($15.30/SF)
– 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 $15.30/sf.
– This sample size included 33 different Tesla facilities nationwide (SSD and Collision) that have traded or been listed in the trailing 24-months.
Dense Location with Strong Traffic Drivers
– The four most populated cities in the state of Connecticut are all within an hour drive of the subject property (Bridgeport, Stamford, New Haven and Hartford)
– Tesla is strategically positioned along Milford’s “dealership row” with 15 dealerships in less than a mile.
– National retailers less than a mile from the property include: Costco, Whole Foods, Walmart, Target, Trader Joe’s, Lowe’s, Macy’s, Stop & Shop and more.
