Manteca Weighs $4M Land Sale for Tesla Dealership

The City Council considers selling 3.7 acres at 1403 Atherton Drive to Drake Real Estate LLC at its November 17 meeting.

Updated on Nov. 13, 2026 in Buying/Selling

Screen-print poster illustration of a triangular patch of dry ground behind a weathered wooden fence, with four white survey stakes standing at its center. — The Manteca City Council will consider selling 3.7 acres at 1403 Atherton Drive to Drake Real Estate LLC for $4 million on November 17. AI Illustration. Upload story photo >

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The Manteca City Council will consider selling 3.7 acres of municipal land at 1403 Atherton Drive to Drake Real Estate LLC for $4 million, Tuesday, November 17, 2026, at 6 p.m. Drake Real Estate LLC would develop a build-to-suit Tesla dealership and service center on the parcel.

Why it matters

The city bought the triangle-shaped parcel in 2024 for $2.2 million, and officials say the site was considered problematic by the private sector until a suitable user was found. If approved, the sale would return an estimated $1.8 million to the city within two years.

The 3.7-acre parcel is being sold for $4 million, while the city retains 0.15 acres leased to OutFront Media for an LED billboard. The billboard lease guarantees the city at least $300,000 annually, and a second billboard site at the Highway 99/Lathrop Road interchange is projected to generate at least $300,000 yearly.

The players

Tesla

Tesla is an American electric vehicle and clean energy company founded in 2003 and led by Elon Musk, known for its dealerships and service network across the United States.

Drake Real Estate LLC

Drake Real Estate LLC is a real estate development firm selected to build a build-to-suit Tesla dealership and service center in Manteca.

Gary Singh

Gary Singh is the mayor of Manteca, California, who led the billboard lease negotiations that guarantee the city at least $300,000 annually.

OutFront Media

OutFront Media is an American outdoor advertising company that leases billboard space nationwide, and it holds the long-term lease for the electronic LED billboard on city land.

The details

Tesla selected Drake Real Estate LLC to build the dealership and service center, which will sit west of Living Spaces. Revenue from the billboard sites above a set threshold is split 50-50 at the Atherton Drive location and three ways with a private property owner at the Highway 99 site, and the city is finalizing the second billboard deal.

2024: City purchased the 3.85-acre parcel for $2.2 million.
Tuesday, November 17, 2026, 6 p.m.: City Council considers the land sale at the Manteca Civic Center.
Two years after the sale: City is expected to net $1.8 million from the property.

Market Landscape

Tesla's direct-sales model has led it to build company-controlled showrooms and service centers rather than rely on franchised dealers, and the Manteca project follows that pattern through a build-to-suit facility. The deal reflects how automakers with direct-sales strategies are reshaping local dealership development in mid-sized California cities.

If approved, the sale would bring a new Tesla dealership and service center to Manteca, giving local car buyers and owners a nearby place to purchase and maintain Tesla vehicles. The city's $1.8 million net return and billboard revenue could also support municipal budgets that affect residents' tax bills.

The takeaway

Local governments can turn hard-to-develop public land into revenue by pairing a sale with a committed private user and long-term advertising leases. Residents who follow the November 17 council vote can track how the city spends those proceeds.

What happens next

The Manteca City Council will vote on the land sale at its Tuesday, November 17, 2026, meeting at 6 p.m. The city is also finalizing the second billboard lease deal.