Well, here’s another fine Tesla deal. But rather than a stock investment or even less-expensive Tesla vehicles, this particular investment involves a building. Specifically, the one housing the Tesla dealership serving Cleveland, Ohio.
Tech-focused and New York–based real estate brokerage, B+E announced the sale of the property for $6 million, and it claims the building has a cap rate of six percent (that is the annual rate of return one can expect to receive on the property). B+E also says that Tesla has a long-term net lease in place.
The luxury EV maker recently posted a profit for the second quarter in a row; during that earnings call Elon Musk said that even “if there’s a global recession, we’re expecting global deliveries to be 50 percent more than last year.” We’re not sure how many of those will move through northeastern Ohio, but it has to be more than a few, right?
According to cleveland.com, the Tesla dealership opened in 2014 in a space formerly occupied by an Infiniti franchise. It’s also said to be the only Tesla dealer near Cleveland, and one of two Tesla service centers in Ohio. The property at 5180 Mayfield Road in Lyndhurst measures 23,428 square feet and sits on 2.9 acres of land.
It looks like the building is in a choice location if Google Maps is anything to go by, being centrally located between the Inner State Beauty School and Motter’s Music House, and directly across the street from the Family Urgent Care Center. So as long as the company keeps cranking out new EVs and profits, your investment should be better than gold. Unless any Tesla short-sellers are right, then you can just lease your building to the folks at Rivian, which just received a big infusion of cash from investors that included Amazon.