8301 NW 7 Ave. Miami 800x533

Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, has completed 3 major transactions within the automotive real estate sector.

After working through a variety of property and title issues for more than a year, The Taverna Collection, an entity managed by GianMarco Taverna, purchased the Ted Vernon Specialty Automobiles location at 8301 NW 7 Ave. in Miami (pictured above) from TAM Investment Properties, LLC, Both the dealership and property were owned and operated by Ted Vernon. The properties consist of approximately 38,961 square feet of buildings and a total of 3.53 acres of land. The transaction closed at $6,500,000. Xavier Cossard PA assisted in the sale. In a separate transaction. Ted Vernon Specialty Automobiles will be relocating to Greater Orlando in the near future and the purchase will complete its 1031 exchange. This subsequent transaction, which was facilitated by SperryCGA/Flint Brokers, an affiliate office, closed on August 2.

The second transaction involved the sale/leaseback of 500 N. State Road 7 in Plantation. The property sold for $1.7 million. The seller, 500 Ventures, LLC, sold the property and a related company, Car Net Auto Sales, Inc. The tenant leased the property back for 5 years on a triple net basis. The combined value of the transaction was approximately $2.4 million. Osborne stated that the location being situated on a hard-lighted corner along with having legal conforming zoning for auto sales drove the value. The transaction marks the third transaction Osborne has completed with the same buyer, GCDC 3, LLC, for automotive properties in the South Florida area.

The third transaction was the leasing of 770 N. State Road 7, an auto repair facility located in Plantation, owned by GCDC 2, LLC. The lease is a true triple net lease transaction with an approximate lease value of $650,000 for the 5-year term. Osborne supervised the renovations of the property after it was purchased back in December 2021 for $1,450,000.

770 N. State Road 7 Plantation-After Renovation

Osborne believes strongly that any automotive property in a prime location with legal conforming zoning and an active dealer and repair license will only increase in long term value. He has multiple clients that are always looking for automotive related properties in prime location in the tri-county area.

 

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Auto magnate Terry Taylor wants to build a Lincoln dealership in Coconut Creek.

The 79,897-square-foot Lincoln of Coconut Creek would be constructed next to Infiniti of Coconut Creek, at 5501 W. Sample Road. The entire property is owned by TT of Sample LLC, led by Taylor of West Palm Beach-based dealership giant Automotive Management Services.

The company currently operates a small Lincoln dealership within the Infiniti building.

The city’s Development Review Committee heard the plans on July 14, and city staff will continue to review the application until it’s ready for the Planning and Zoning Board as well as the City Commission, said Amy Edwards, a development review specialist with the city of Coconut Creek.

The Lincoln dealership would have 29,924 square feet of showroom and office space, 49,973 square feet of automotive retail and 358 parking spaces. Penney Design Group in Bethesda, Maryland designed the project.

The only other Lincoln dealerships in Broward County are in Pembroke Pines and Pompano Beach.

South Florida is one of the busiest markets in the country for car sales, and the increase in new car values has boosted sales for many dealers. Building a stand-alone Lincoln dealership will make it easier for Taylor to provide repair and maintenance service to his customers.

 

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Lithia Motors & Driveway paid a combined $72.27 million for the real estate assets of Lehman Dealership Enterprises, according to Miami-Dade County records.

Medford, Oregon-based Lithia announced the acquisition of the family-owned chain of nine dealerships on June 28, but didn’t disclose the price. The deeds filed in Miami-Dade list the prices of the real estate but not other assets that were likely included in the deal, such as the value of automotive inventory and the dealership franchises.

Here is how the sales from Lehman to various affiliates of Lithia Motors broke down:

  • Largo Honda, totaling 203,528 square feet on 3.7 acres at 554 N.E. 1st Ave., Florida City, sold for $22 million.
  • Doral Hyundai and Doral Genesis, totaling 40,654 square feet on 11.9 acres at 10285 N.W. 12th St., sold for a combined $26.73 million in two deeds.
  • Doral Kia, located on three acres at 10155 N.W. 12th St., sold for $6.69 million.
  • Lehman Buick GMC and Lehman Subaru, totaling 79,810 square feet on 13.7 acres at 21200 N.W. Second Ave., Miami Gardens, sold for a combined $12.97 million in two deeds.
  • Lehman Leasing, Van, Truck & Bus, totaling 11,711 square feet on 3.4 acres at 20950 N.W. Second Ave., sold for $2.69 million.
  • Lehman Mitsubishi, covering two acres at 21000 N.W. Second Ave., Miami Gardens, sold for $1.19 million.

Bill Lehman Jr. said the dealerships have nearly 500 employees and Lithia is keeping almost all of them. They had about $850 million in sales a year.

 

Source:  SFBJ

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Despite car sales waning since the beginning of the pandemic, Delray Beach is seeing significant reinvestment in the industry with a pair of large new dealerships in development.

Earlier in June, the city gave preliminary approval for a new 4.3-acre Hyundai dealership at 2419 N. Federal Highway. As a result, Delray Hyundai would move from its current location just south of George Bush Boulevard into the new property, which is twice as large.

Additionally, a new AutoNation Land Rover Jaguar dealership is being planned for 1001 W. Linton Blvd., adjacent to a Mercedes-Benz dealership. Plans have been submitted to the city and are currently under review.

This comes less than a year after Tesla opened a service center in Delray Beach along Federal Highway.

The commitment to new dealerships comes after the industry experienced significant losses at the beginning of the pandemic. In 2020, rental car companies sold off more than 770,000 vehicles, a third of their combined fleet, according to the Washington Post.

Additionally, inflation and supply chain issues have caused car prices to skyrocket with new car prices jumping 12.6% since last year, according to Fortune Magazine. In May, new car sales dropped 11% from April, marking the lowest level since December, according to Bloomberg.

Karl Brauer, an executive analyst at iSeeCars.com , said supply-chain issues, such as a global shortage in microchips, which are vitally important for new cars, have helped cause the significant drop.

“We don’t have enough cars being produced and that’s causing people to keep their current car, which restricts used-car supply,” Brauer said. “[That] causes old and new [car] prices to shoot up like they have in the past 18 months.”

While the supply-chain issues are causing significant problems, Brauer said he thinks there’s “optimism and some valid thinking [in the industry] that this is transitory” and that eventually the microchip issues will be resolved and help stabilize the business model.

AutoNation “continues to both build and buy dealerships, so clearly there’s confidence at that level for these kind of dealer conglomerates to continue to grow whether the buy existing dealers and add them to the mix or build brand new ones,” Brauer said.

Delray Beach currently has 22 car dealerships, Planning and Zoning Board member Christina Morrison said during a public meeting.

The proposed Hyundai dealership would be built on a vacant lot that’s remained undeveloped for more than a decade and an adjacent pottery store. The land was purchased for $10 million in January, according to Palm Beach County Property Appraiser records. Nearby businesses include Gunther Volkswagen and Gunther Volvo dealerships, a car wash, a home furnishing store, and bicycle shop.

The project would help revive the area and create new employment opportunities, said Bonnie Miskel, an attorney representing the developer, in documents submitted to the city.

Miskel added the dealership would “allow for a multimillion-dollar investment in construction and related costs and the creation of scores of new jobs” as well as an increase in property values.

Planning and Zoning Board member Allen Zeller was in favor of the new dealership, noting that “not a lot has happened” in the area over the past decade.

“That area is blighted,” Zeller said. ”The buildings are old buildings most of them. The only newer development is associated with car dealership and automotive businesses on Federal Highway.”

Board member Joy Howell, who voted against the project, questioned whether another car dealership was the best use of the city’s scarce available land while the city faces a housing shortage.

“I think we’re kind of making the decision as if it’s a choice between a blighted lot and car dealerships,” Howell said. “What if you had a developer who came in and said I want to put townhouses on this big, huge parcel? I mean, developers I know are looking for large in-fill lots if they can find them.

“We already have some townhouse developments on Federal right now and if you had more, that’s when you get restaurants and little retail and walkability. I could see that as a vision for that part of Federal, not going more in the direction of the big, humongous car dealerships.”

The project will go before the City Commission for final approval later this year.

 

Source:  NewsBreak

 

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