The building that houses the Cleveland area's only Tesla showroom and service center in Lyndhurst has quietly been put up for sale, setting up a closely watched real estate play along busy Mayfield Road. The 24,609-square-foot property, sitting on nearly 2 acres, is being marketed to investors as a single-tenant, net-leased asset with Tesla locked in as the tenant through 2030.
The listing was first reported by Crain's Cleveland Business, which noted that the site is being shown to both institutional and private buyers.
Deal details
An offering memorandum from The Boulder Group and Bang Realty pegs the list price at $5,382,353, with a projected capitalization rate of 6.8%. The document outlines a 24,609-square-foot building on a 1.98-acre parcel, a lease commencement date of Feb. 1, 2015, and a lease expiration of Jan. 31, 2030. It also notes three five-year renewal options that include contractual rental escalations.
Local significance
According to Tesla, the Lyndhurst showroom at 5180 Mayfield Road is listed as the company's primary sales and service hub for the Cleveland metro. That role makes the property a key spot for test drives, vehicle deliveries, and repair work across much of northeastern Ohio.
Why investors will watch
The offering leans on Tesla's "BBB" Standard & Poor's rating as a key selling point, a common tactic when brokers pitch credit-tenant investments. The property has been posted on commercial marketplaces such as LoopNet, and prospective buyers are expected to pay close attention to whether the final sale price lands near the asking number or reflects the lease rollover coming in 2030.
For now, the Lyndhurst showroom and service center are operating as usual, with Tesla still firmly in place. Listings and public records will be worth watching for any signs of a buyer emerging or shifts in the existing lease.
