Arlington, VA - Tesla Service Center

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN leased, freestanding, Tesla Showroom and Repair Service investment property located in Arlington, VA (Washington DC MSA). The tenant, Tesla, Inc., has several years of firm term remaining with 2 (5-year) option periods left to extend. The lease features 10% rental increases every 5 years throughout the initial term and options, growing NOI and hedging against inflation. The lease is guaranteed by the corporate entity (S&P: BBB) and is NN with limited landlord responsibilities, making this an ideal, low-management investment opportunity for a passive investor. Tesla is one of the world’s most valuable companies and remains the world’s most valuable automaker with a market capitalization of +/- $1T.

Tesla is strategically located along Glebe Road with clear visibility and access to an average of 32,000 vehicles passing by daily. The property also benefits from direct access onto Interstate 395 (215,000 VPD) and Richmond Highway (51,000 VPD), making this a centralized location with easy commutes for employees and customers. The property is ideally situated within a dense trade area and is near Crossroads Plaza (345K+ SF), Crossroads Center (417K+ SF), Potomac Yard Center (631K+ SF), The Fashion Centre at Pentagon City (1.015M+ SF), and others. The nearby tenants include Target, Ikea, Costco Wholesale, ALDI, TJ Maxx, Porsche, Marshalls, and others. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. In addition, the subject is a quick 8-minute drive to Ronald Reagan Washington National Airport with 25.5 million passengers in 2023. Furthermore, the property is near numerous single-family communities and multi-family complexes including Arna Valley View (101 units), Lloyd Apartments (301 units), Avalon at Arlington Square (842 units), and others, providing a direct residential consumer base. The 5-mile trade area is supported by over 642,700 residents and 697,600 daytime employees. Residents within 1-, 3-, and 5-miles of the site boast an affluent average household income of $169,928, $170,054, and $169,009, respectively.