Irvine, Calif. – May 25, 2023 – Faris Lee Investments, a leading retail advisory, and investment sales firm, has completed the $14 million presale of a 10-year triple net (NNN) lease property occupied by Tesla Motors (NASDAQ: TSLA) in the Atlanta suburb of Fayetteville, GA. The closing CAP Rate of 5.55% is the lowest CAP Rate year-to-date for the innovative brand.
Director Hunter Steffien, as well as Principal Jeff Conover, and Senior Managing Director Scott DeYoung, represented the seller in the transaction and sourced an all cash 1031 exchange family office from Southern California. Hunter Steffien in response to the successful closing, “Our team is proud to set the market for Tesla in such an impactful way, especially during a time with accelerated interest rate hikes from the Federal Reserve. This impressive CAP Rate of 5.55% will pay dividends for Tesla as the brand continues to aggressively expand across the county.”
The fully renovated 66,324-square-foot property designed to be a Tesla Service Center and Showroom presented an attractive investment opportunity for the Southern California 1031 exchange buyer. Tesla Motors is the 6th most valuable company in the world by market cap and boasts an investment grade BB+ S&P credit rating. With worldwide revenue of $53.8B, Tesla is the fastest-growing brand and leading electrical vehicle brand in 2021, with sales growing 87% YoY in 2021.
The property is situated in a dense retail corridor adjacent to major retailers such as Target, Home Depot, Walmart Supercenter, Publix, Hobby Lobby, Harbor Freight Tools, and more. The location offers easy access to the Hartsfield-Jackson Atlanta International Airport, just 12 miles away, and downtown Atlanta, just 21 miles away.
The property boasts a brand new 10-year NNN lease with Tesla, ideal for passive investors. The site is located in a densely populated area, with an estimated 92,861 residents within a 5-mile radius, 393,568 residents within a 10-mile radius, and 1,279,248 residents within a 20-mile radius. The hard corner site also has exceptional traffic counts, with State Highway 85 seeing an average of ±30,800 VPD.
This is one of only five Tesla stores in the Atlanta MSA, with the others located in Alpharetta-Roswell, Decatur, Kennesaw, and Marietta. The new Fayetteville location is expected to draw from a large customer base in the surrounding areas.
The property has undergone a full renovation in 2022, with a brand-new roof and HVAC warranty, and two ingress access points from Crossroads.
During the marketing period, the team highlighted the emergence of the Tesla brand and targeted all cash private investors and family offices in 1031 exchanges. After receiving multiple offers, the transaction closed all cash at a 5.55% cap rate.
About Faris Lee Investments:
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com
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