LOS ANGELES–Sentinel Net Lease announced the acquisition of a Tesla Store & Service Center for $10.5 million. The 27,032 square foot property is 100% occupied by Tesla under a long-term lease and sits on 2.61 acres in the Chicago Metro Area in Schaumburg, Illinois.
With this latest purchase, Sentinel is continuing to tie itself to real estate occupied by tech-centric and essential service companies poised for long-term growth, executing on acquisitions of pandemic-resistant real estate that have the potential to generate sustainable, passive income.
“With the highest valued automaker in the world as a credit rated tenant, this unique investment provides the opportunity to acquire a first-class property with a long-term lease to a strong national tenant and showcases the power of pandemic-resistant real estate,” said Dennis Cisterna, Sentinel’s Chief Investment Officer, highlighting the benefits of this acquisition.
Following a complete renovation of the property in 2019, Tesla executed a ten-year lease that extends through 2029. Sentinel believes Tesla is positioned for continued growth and financial strength given its increasing sales and captive service model.
After 11 years in the market, Tesla is ranked as the world’s best-selling plug-in and battery electric passenger car manufacturer, accumulating total revenue of $24.6 billion in 2019. This year, the company surpassed the 1 million mark of electric cars produced and has continued to surge the stock, commanding a market cap of more than $790 billion.
As a quality asset in a highly desirable location, the property is well-located in one of Chicago’s most desirable submarkets. The village of Schaumburg is the largest center of economic development in the State of Illinois, outside the City of Chicago. In addition to the 9.5 million square feet of retail and restaurant space, the village has over 12 million square feet of office space and 13.5 million square feet of industrial space.
Fred Lewis, CEO of Sentinel, noted, “This acquisition is just the latest example of Sentinel’s commitment to providing our investors strong risk-adjusted returns on high quality commercial real estate investments. We’re bullish on continuing to expand our portfolio in 2021 and beyond.”
