Nikola sells Coolidge site to investor, signs ground lease for manufacturing facility
A real estate investor has acquired nearly 400 acres of land in Coolidge from electric vehicle and hydrogen-fuel truck maker Nikola Corp. and signed a lease agreement with the company for its existing manufacturing plant on the large property.
An entity tied to Scottsdale-based STORE Capital Corp., a net-lease real estate investment trust, or REIT, purchased 394 acres from Phoenix-based Nikola (Nasdaq: NKLA) for $50.4 million, or about $127,708 an acre at the end of June, according to Pinal County documents and real estate database Vizzda.
Nikola did not sell its manufacturing plant to the investor but signed a ground-lease agreement that’s set to expire in 99 years, according to county documents and a spokesperson. Nikola previously acquired the site for its factory in 2019 for $23 million, or about $59,346 an acre, the Business Journal previously wrote.
STORE Capital did not immediately respond to a request for comment.
A Nikola spokesperson did not address a question about why the company sold its property, but previous reporting from FreightWaves said that Nikola was planning to spend less money in 2023 and was reportedly selling its Coolidge facility to raise money.
Nikola has been working to protect its ongoing operations and decrease its cash outlay below $400 million by 2024 with several initiatives including focusing on its hydrogen fuel cell trucks, HYLA hydrogen refueling business, while temporarily pausing production of its Tre battery electric trucks in Coolidge.
In May, Nikola received an initial approval from Buckeye for a planned hydrogen manufacturing plant on 160 acres. The 160 acres in Buckeye is part of the company’s overall 1,000-acre site in the West Valley.
Nikola is also looking to increase the amount of its outstanding common stock to help raise additional capital for its hydrogen fuel cell truck production, which is expected to launch this month. As of June, the company received 178 sales orders from 14 customers for the hydrogen fuel cell trucks.
Nikola also received a $41.9 million grant from the California Transportation Commission to build six new hydrogen refueling stations, which the company expects to be up and running within two to three years.
Last month, the company also laid off 230 workers based at its Phoenix headquarters and Coolidge manufacturing plant as part of its plan to reduce spending.
Nikola’s stock closed Tuesday at $1.41 a share, down 4.4%. Track the stock here.