Miami-based Exan Capital bought a commercial property that currently houses one of the two Tesla service centers in Chicago.
The property, at 3059-3067 Elston Avenue near the central business district on the North Side, was sold for $13.1 million, property records show. The one-story building, which sits on a 1.7-acre parcel, is leased to Tesla for 10 years. The electric vehicle manufacturer started operations in the 31,700-square foot facility in November of 2019. Tesla’s lease includes a ten percent increase in rent every five years, and includes five-year extension periods.
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 in the West Loop.
The Elston Avenue building was constructed to Tesla’s specifications, according to a marketing brochure from Cushman & Wakefield. Half of the property was ground-up construction. The other half was 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, which is headed by Juan Jose Zaragoza, operates both in the United States and Europe. Its holdings, concentrated in Florida, includes the ground-floor retail space at X Miami.
In Chicago, it acquired a ground-floor retail property at 520 South State Street near DePaul University last year. In January, the company also closed a large warehouse transaction, buying a one million square foot Amazon fulfillment center in the Houston suburb of Brookshire. The firm did not respond to a request for comment.
The transactions come as consumer confidence in Chicago’s retail sector rises to its highest level since the start of the pandemic in March 2020. According to CBRE’s second quarter retail marketview report, the city’s Consumer Confidence Index rose to 127.3 last June. The figure added to a four-month streak of gains in the index. During the quarter, the largest retail sale was Steinhafel’s acquisition of the 122,532-square-foot property at 1021 Butterfield Road in Downers Grove.