Providence, RI - Tesla

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased, freestanding, investment grade, Tesla Sales, Service, and Delivery Center (SSD) investment property located in Providence, RI. The tenant, Tesla, Inc. (dba Tesla Motors, Inc.), recently signed a brand new 10-year lease with 2 (5-year) option periods to extend, demonstrating their commitment to the site. The lease features scheduled rental increases after year 5 and at the beginning of each option period, growing NOI and hedging against inflation. The lease is signed by the corporate entity (S&P: BBB | NASDAQ: TSLA), and is NNN leased 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. The subject is the third largest Tesla Service Center site (SSD) in the country at nearly 77K SF, making it a perfect fit for Tesla’s logistics needs for vehicle delivery & customer returns.

Tesla is strategically located along Reservoir Avenue with clear visibility and access to an average of 27,000 vehicles passing by daily. The property benefits from nearby access onto U.S. Highway 1 (13,800 VPD), State Highway 10 (68,000 VPD), and Interstate 95 (176,100 VPD), making this a centralized location with easy commutes for both employees and customers. Tesla is ideally situated within a dense trade area and is near Cranston Parkade, a 283K+ SF Community Center anchored by Stop & Shop and Burlington. The additional nearby tenants include Lowe’s Home Improvement, ALDI, Dunkin’, Popeyes, V-Mart International Market, Advance Auto Parts, and others. The strong national and regional tenant presence drives a steady stream of loyal, local consumers to the area and promotes crossover store exposure. Furthermore, Tesla is near numerous single-family communities and multi-family complexes including Colony House (101 units), Harris House (133 units), Arlington Manor (150 units), and others, providing a direct residential consumer base. The 5-mile trade area is supported by over 385,800 residents and 264,000 daytime employees, with a healthy average household income of $97,179.