A Las Vegas-based investment firm bought a recently built Tesla’s dealership property in Chicago’s North Shore.
Kingsbarn Realty Capital acquired Tesla’s 48,000-square-foot flagship at 1200 Skokie Boulevard in Northbrook for nearly $30 million, about $625 per square foot, Crain’s reported. JLL’s Alex Sharrin and Josh Katlin represented the seller, a joint venture of Chicago-based developers Focus and Fort Union.
The two developers acquired the site for $5 million a year ago. A month later, they secured a $19.6 million construction loan to complete the facility, which opened in August. It is the electric-car maker’s only center in the Chicago-area that provides new vehicle preparation, delivery and maintenance.
While commercial real estate transactions have slowed in recent months due to tighter lending conditions, properties like this one are seen as attractive investments due to their steady income from established tenants. Tesla’s brand presence as well as the building’s strategic location also make it stand out in a competitive market.
“The combination of Tesla’s long-term commitment to the property and Northbrook’s affluent demographics made this an attractive investment opportunity,” Sharrin said.
Focus is a major player in the region’s real estate market, with a history of successful developments, including residential projects in Aurora and Vernon Hills.
For Kingsbarn Realty Capital, the acquisition is a significant entry into the Chicago-area market.
The investment firm, led by founder and CEO Jeff Pori, manages more than $2 billion in assets, owns over 280 properties nationwide and is expanding its portfolio with an emphasis on stable, high-performing properties.
— Andrew Terrell
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