Overview
Cushman & Wakefield is pleased to offer to qualified investors the opportunity to acquire an irreplaceable trophy asset located in the highly desirable city of Tempe near Arizona State University.
Tesla, Inc. is an American electric vehicle (EV) and clean energy company founded in 2003 by engineers Martin Eberhard and Marc Tarpenning. Named after the inventor Nikola Tesla, the company was later joined by Elon Musk, JB Straubel, and Ian Wright, with Musk becoming its most prominent figure. Headquartered in Austin, Texas Tesla has become synonymous with innovation in the automotive and energy sectors, leading the charge toward a sustainable future.
Tesla is one of the world’s most valuable companies in terms of market capitalization. As of August 2024, Tesla, Inc., (Nasdaq: TSLA), had a market cap exceeding $664 billion. In October 2021, Tesla temporarily became a trillion-dollar company, the seventh U.S. company to do so. In 2023, they accounted for 55% of all EV sales. Tesla’s annual revenue for 2023 was $97B, a 18.8% increase from 2022. Their recent 2024 Q2 revenue was $25B, a 2.3% increase year-over-year. Tesla is ranked #40 on the Fortune 500 list.
The current lease has a corporate guaranty from Tesla, minimal landlord responsibilities, and 2.75% annual rent increases that provide a hedge against inflation. Tesla exercised an early option in 2020, showing commitment to the site. In addition, Tesla spent millions of dollars in 2015 completely renovating the building which should further mitigate the already minimal landlord responsibilities.
This offering is an excellent opportunity for an investor looking to acquire a trophy quality asset with one of the world’s largest companies as the tenant. The location in Northern Tempe has excellent redevelopment potential and will continue to increase in value as Arizona State University grows and new developments of all asset types continue to be built around the subject property.
Check out our property video in the link below!
Investment Highlights
Investment Highlights
- Rare 2.75% annual rent increases - ideal hedge against inflation
- Strong corporate guaranty with Tesla, Inc.
- Minimal Landlord responsibilities
- Tesla has spent millions of dollars on building upgrades to accommodate the large showroom and service center
- Sustainable below market rent PSF at $16.40/SF annually
- Potential additional income with management fee paid by Tenant up to 3% of annual rent
- Tesla exercised an early option in 2020, showing commitment to the site
Tenant Highlights
- Publicly traded company, Tesla, Inc., (Nasdaq: TSLA), has a market cap exceeding $664 billion (August 2024)
- Tesla’s annual revenue for 2023 was $97B, a 18.8% increase from 2022.
- EV market leader: Tesla accounted for 55% of all EV sales in 2023
- #40 on the Fortune 500 list
- Mission Critical: 1 of 4 total Tesla Service Centers in the Phoenix MSA
Location Highlights
- Across from a 300+ acre office and industrial park including “The Circuit” – a newly renovated 185k SF Class-A Office Campus
- Frontage on University Dr and less than 2 miles from Arizona State University (±51,144 on campus students)
- Adjacent to Loop 101 Freeway with ±175,619 VPD
- Densely populated trade area with over 365,000 residents in a 5-mile radius, with over half the workforce within three miles of the site being in tech focused sectors – ideal Tesla customer
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