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Jones Lang LaSalle Americas, Inc. (JLL), as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in 1235 Elko Drive (“1235 Elko” or the “Property”), a single story, 36,036 square foot light industrial asset in Sunnyvale, California. Situated on a 1.8-acre site, 1235 Elko is 100% leased to Tesla, Inc. (“Tesla” S&P: BBB) for 10 years (exp. 01/2033). As a leading designer and manufacturer of electric vehicles, battery energy storage from home-to-grid scale, solar panels, and solar roof tiles, Tesla will utilize the Property to serve as its second collision repair service center in the Bay Area.
Ideally located in Silicon Valley’s “Golden Triangle” along Route 237 and the Lawrence Expressway, 1235 Elko sits amongst world-leading innovators with superior access to the Bay Area’s San Francisco Peninsula and I-880 Corridor. Situated in one of the most robust technology markets in the world, Sunnyvale, the Property sits at the intersection of auto-tech, clean-tech, biotech, and advanced manufacturing, and notably, is just over 11 miles from Tesla’s Fremont manufacturing facility. Silicon Valley, and Sunnyvale specifically, represents one of the Bay Area’s most sought after industrial markets, as evidenced by the 2.8% vacancy rate and 7.1 million square feet of tenant demand, more than double the 3.2 million square feet of availability.
As one of only two Tesla collision centers servicing the Bay Area, 1235 Elko is well positioned to cater to the needs of today’s consumers in a market that has one of the largest Tesla-owned car populations in the world. With planned renovations, the Property will feature highly improved infrastructure with 22 foot clear heights, 1,200 amps of power and the capacity to service 66 vehicles. The improved infrastructure, paired with 10-years of Tesla (S&P: BBB) investment-grade lease term, provides a rare investment opportunity in Silicon Valley where industrial inventory is rapidly diminishing.
1235 Elko offers investors the rare opportunity to acquire a long-term, investment-grade Tesla (S&P: BBB) leased asset with immediate income stability in one of the most supply constrained submarkets in the world.
- Opportunity to acquire a credit-leased asset in Sunnyvale
- 10 years of NNN lease term with Tesla (S&P: BBB)
- Located in a flourishing auto-tech submarket proximate to the world's most diverse tenant base and largest tech leaders
- One of only two Tesla collision centers in the Bay Area
- Increasingly supply-constrained industrial submarket with robust tenant demand
- Planned renovations featuring highly improved and capable infrastructure
- Prime Silicon Valley location proximate to mass transportation options