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