1A Newbury St Peabody, MA 01960

Property Details for 1A Newbury St

Year built

2024

Lot size

0.70 lot acres

Property size

2,400 SF

Property type

Lifestyle centers

Property subtype

Power centers

Description

This exceptional investment opportunity presents a newly constructed, Class A retail property in Peabody, MA, featuring a Starbucks and 10 Tesla Supercharger stations. The property boasts a 2,400 square foot building on a 0.7-acre lot with 15 parking spaces. A new 10-year net lease with Starbucks commenced September 30, 2024, and includes four, five-year options with a 10% rent increase every five years. The lease is backed by a corporate guarantee. Additionally, a separate 10-year lease with Tesla for the Supercharger stations provides supplemental income, also with a corporate guarantee and 3% annual rent increases. The property enjoys a prime location at the intersection of Route 1 (100,000 vehicles per day) and I-95 (124,500 vehicles per day), ensuring high visibility and substantial foot traffic. The current annual net operating income (NOI) is $230,000, resulting in a 5.60% capitalization rate. This single-tenant, stabilized investment offers minimal landlord responsibilities (roof and structure), providing a secure and lucrative passive income stream from two investment-grade tenants. The property is situated in a thriving retail hub, close to major retailers and office parks, further enhancing its value and potential for future growth. The building was constructed in 2024 and is 100% occupied. This is a 1031 exchange eligible property.