Lealman Tesla center sells in $26M deal

The newly-opened 102,410-square-foot Tesla Motors center in Lealman has a new owner. 

Developer Rob Truett, a principal at the Delray Beach-based Truett Realty Group, was behind the project to transform the former Kane’s Furniture liquidation building in Lealman into a state-of-the-art delivery and repair center for Tesla. Truett sold the property that houses the center in a $26.25 million deal to Maryland-based Priority 1 Automotive Group. 

Truett, who purchased the property at 4601 34th St. N. in April for $13 million, was not immediately available to comment about the sale – and if there would be any changes to the center.

Priority 1 Automotive Group, the buyer, was a family-owned business that operates automotive dealerships in Maryland and the Washington, D.C. markets. In 2021, auto retail giant AutoNation acquired Priority 1 Automotive.

It’s common in the automotive industry for franchises to purchase other competing dealerships from groups and/or developers to expand their portfolio. 

The existing Tesla center model differs from how a traditional dealership functions, as Tesla directly sells the vehicles to customers without the use of an independent dealer. 

When the news spread last year about Elon Musk’s Tesla company entering Lealman, local business owners and residents said it was significant because Lealman has long been considered a neglected area, and the center may not only spur more activity in the district, but it would also become the first Tesla center in Pinellas County.

The Tesla center officially opened in February when Truett received a certificate of occupancy. 

The Tesla center currently features:

• A 3,000-square-foot showroom that fronts 34th Street. Delivery takes place out of this location for both vehicles ordered online and on-site as most of the fleet is custom ordered.
• A 35,000-to-40,000-square-foot space used for providing services and repairs. The maintenance services are located in the middle of the building.
• A designated portion of the building for storing parts, which totals roughly 8,000 to 10,000 square feet.
• A 50,000-square-foot vehicle storage area primarily used for the ordered vehicles awaiting delivery.

Truett worked with St. Petersburg-based Scherer Construction as the general contractor, and built the center at the 4.21-acre site.

“I love adaptive reuse; it’s sustainable and 34th Street is a major plus, it’s very densely populated and is close to other dealerships,” Truett previously said, noting the site is near the existing BMW and Land Rover dealerships.