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Auto Dealership

Tesla Store & Service Center | S&P: BBB | 2.00% Annual Increases | 630k People in 10-Mile Radius

7520 N Military Hwy, Norfolk, VA 23518

Listing Price: $6,688,000

Cap Rate
7.00%
Tenant Name
Tesla, Inc.
Years Remaining On Lease
7.9
Guarantor
Corporate Guarantee
Rentable SF
49,997
Lease Type
Double Net
Rent Per Square Feet
$9.36

Investment Overview

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.

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.

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.

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.

Investment Highlights

  • Investment Grade Corporate Guarantee
  • Long-Term Lease with 2.00% Annual Rent Increases
  • Strategic Location Servicing Southeast Virginia
  • Densely Populated Area & Highly Trafficked Corridor
  • Well Below-Market Rents & Priced Below Replacement Cost

Exclusively Listed By

Broker of Record

  • Brian Hosey

    Senior Vice President/Division Manager

    (202) 536-3700

    License(s) VA: 0225247494

    Virginia

Financing By

Auto Dealership

Tesla Store & Service Center | S&P: BBB | 2.00% Annual Increases | 630k People in 10-Mile Radius

Listing Price: $6,688,000

Cap Rate
7.00%
Tenant Name
Tesla, Inc.
Years Remaining On Lease
7.9
Guarantor
Corporate Guarantee
Rentable SF
49,997
Lease Type
Double Net
Rent Per Square Feet
$9.36

Investment Highlights

  • Investment Grade Corporate Guarantee
  • Long-Term Lease with 2.00% Annual Rent Increases
  • Strategic Location Servicing Southeast Virginia
  • Densely Populated Area & Highly Trafficked Corridor
  • Well Below-Market Rents & Priced Below Replacement Cost

Investment Overview

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. 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. 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. 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

Broker of Record

  • Brian Hosey

    Senior Vice President/Division Manager

    (202) 536-3700

    License(s): VA: 0225247494

    Virginia

Financing By

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