Miami-based Exan Capital bought a commercial property that currently houses one of Tesla’s two Chicago service centers.
The property at 3059-3067 Elston Avenue, near the central business district on the North Side, sold for $ 13.1 million, property records indicate. The one-story building, which stands on 1.7 hectares of land, is leased to Tesla for 10 years. The electric vehicle maker began operations at the 31,700 square foot facility in November 2019. Tesla’s lease includes a ten percent rent increase every five years and extension periods of five years.
Tesla has a total of six service center locations in Illinois, according to its website. The company also operates a store at 1053 West Grand Avenue on the West Loop.
The building on Elston Avenue was built to Tesla specifications, according to a marketing brochure from Cushman & Wakefield. Half of the property was foundation construction. The other half has been completely renovated. The deal also includes a 28,726 square foot parking lot at 2618 West Nelson Street.
The seller is 3059-3067 Elston Baker, LLC, which is controlled by Baker Development Head Warren H. Baker.
Miami-based Exan Capital, led by Juan Jose Zaragoza, operates in both the United States and Europe. The holdings concentrated in Florida include the retail space on the ground floor of X Miami.
In Chicago, the company acquired a first floor retail property at 520 South State Street near DePaul University last year. In January, the company also completed a major warehouse transaction and purchased a million square foot Amazon fulfillment center in the Houston suburb of Brookshire. The company did not respond to a request for comment.
The transactions come as consumer confidence in Chicago’s retail sector climbs to its highest level since the pandemic began in March 2020. The city’s consumer confidence index rose to 127.3 last June, according to CBRE’s second-quarter retail report. The number contributed to a four month winning streak in the index. The largest retail sale during the quarter was Steinhafel’s acquisition of 122,532 square feet of land at 1021 Butterfield Road in Downers Grove.