The buildings that house the tool and die company have been sold to Brennan Investment Group of Minnesota for $9.5 million. The buildings, which were purchased by Tesla Motors in 2015, were sold to BIG as part of a deal that involves around 11 buildings in eight states.
A good news on the West Michigan front: Director for HIS
The $100 million deal is adding 2.5 million square feet to the industrial portfolio of Brennan in Pittsburgh, Grand Rapids, Minneapolis, Jacksonville, Chicago, Milwaukee and Birmingham, according to an announcement made by Brennan earlier this month. Several trade publications and property records have identified the tool and die facility of Tesla at 5460 Executive Parkway SE as one of the properties even when the properties were not identified.
The sale has been confirmed by the records of Cascade Township property, which showed that the five-building parcel was sold to SIP Grand Rapids LLC for $9.5 million. The company gave its address as the headquarters of Brennan Investment Group in Minnetonka, Minn. Tesla Motors of Fremont, Calif. is listed as the tax payer of the property.
In 2015, Tesla – the U.S.-based automaker that is known for its electric cars and its CEO Elon Musk – acquired the former Riviera Tool and Die Co. as it started acquiring the tooling capacity that it required to build components for its Model 3 and Model X editions. Mike Wall, the director of automotive analysis for HIS, said “I think it speaks well of our own industry and supply chain.” He added, “I think it’s very good news on the West Michigan front.”
This acquisition is the sixth joint venture of BIG: Mr. Brennan
The sale – which was on August 31 – was described as a joint venture by Arch Street Capital Advisors, LLC and Brennan Investment Group. The former company is a Greenwich, Conn. – based real estate investment advisory firm.
In a September 12 news release, Michael Brennan, chairman of Brennan Investment Group, “This acquisition marks our sixth joint venture together and demonstrates the breadth and depth of our net lease platform.” He added, “We have the ability to both acquire large portfolios as well as aggregate individual long-term net lease assets.”
The automaker has not been allowed to use its direct sales model to sell its electric cars in Michigan even though the electric car making giant is building the tooling needed to manufacture its electric vehicles in Michigan where the law was changed to require that “new EVs be sold through dealership networks.”