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LA Investor Buys Suburban Chicago Tesla Service Center For $10.5M

Los Angeles-based Sentinel Net Lease has acquired a 27K SF suburban Chicago Tesla Store & Service Center for $10.5M, the company announced Tuesday

Tesla Store & Service Center in Schaumburg, Illinois

Located on 2.61 acres in Schaumburg, Illinois, the former Volkswagen property was completely renovated in 2019 after being acquired by Schaumburg II LLC in 2018 for $5.35M, according to property records. Tesla signed a 10-year lease for the property that extends through 2029 after the renovation was complete.

The acquisition was at a 7.35% capitalization rate based on net operating income on the property for the first year of ownership, according to the new owner's website.

This is the second sale of a Chicago-area Tesla sales and service center in recent months. In December 2020, Greenstone Partners announced the $4.6M sale of Tesla's 9K SF location in Chicago's River West submarket, reportedly Tesla's first location in the city.

Sentinel Net Lease has been active in Illinois of late, acquiring a Schnucks Fresh Foods grocery store in Peoria for $7.5M in the fourth quarter of 2020. Sentinel had acquired two other Schnucks in Illinois earlier in 2020, one in Normal and another in Loves Park, for a combined $18.3M.

Tesla is now reportedly on its way to delivering 1 million cars in 2021. The company reported revenues of $31.5B for 2020, and Q4 was the company's sixth straight profitable quarter.

Sentinel Net Lease acquires and manages free-standing commercial properties under long-term net lease agreements.

Related Topics: Tesla, Sentinel Net Lease