Santa Clarita, CA - Tesla

24050 Creekside Rd, Santa Clarita, CA

Market Price

Price

$2,082,684

NOI

39,195 sqft

Building Size

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Overview
NOI
$2,082,684
Building Size
39,195 sqft
Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN, investment grade (S&P: BBB), Tesla investment property located in Santa Clarita, California (Los Angeles MSA). The tenant, Tesla Motors, Inc recently signed a brand new 15-year lease with 2 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features 3% annual rental increases throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The NNN lease structure allows a future investor to recover all operating expenses, excluding a management fee. The tenant, Tesla Motors, Inc. is one of the world’s most valuable companies and remains the world’s most valuable automaker with a market capitalization of almost $600 billion. Also, with the site being located in Santa Clarita, the subject property is excluded from the new LA City mansion tax.

Tesla is located near the signalized, hard corner intersection of Magic Mountain Pkwy and McBean Pkwy which supports over 101,000 vehicles per day. Furthermore, the asset benefits from nearby direct on/off ramp access to Interstate 5 (181,000 VPD), making this an ideal, centralized location with easy commutes. The site is ideally positioned adjacent to River Oaks Shopping Center, a 275,000 SF power center that’s home to Target, Sprouts Farmers Market, CVS, Big 5, Total Wine, and more. Other nearby national/credit tenants include Whole Foods, Lowes, Vons, Ross, Trader Joes, TJ Maxx, Hobby Lobby, Kohls, In-n-Out Burger, and more. Strong tenant synergy increases consumer draw to the immediate subject trade area and promotes crossover tenant exposure to the site. Moreover, the site is situated less than 3 miles east of Six Flags Magic Mountain, a 209-acre amusement park with over 3.6 million visitors in 2019. Lastly, the asset is strategically located near multiple apartment complexes including The Fairways at Westridge Apartments (234 units), Links at Westridge (230 units), and the Portofino Apartments (216 units), providing a direct residential consumer base from which to draw. The dense 5-mile subject trade area is supported by more than 203,000 residents and 89,000 daytime employees who boast an affluent average household income of more than $155,000. The city of Santa Clarita, valued at $38 billion, ranked the 5th highest valued city out of the 88 cities comprising Los Angeles County, according to the 2021 Annual Report from the LA County Office of the Assessor.

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Listing ID: a28TP000000CsmDYAS
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