Automaker bankruptcies may cause land pileup - Orlando Business Journal:

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It’s the probability of more land coming online inan already-saturated real estated market that has brokers most The reason: With each dealership averaging about 9 acres, an estimatecd 30,000 acres could be dumped on the markeyt nationwide over the next two years if the 3,430 dealers liquidate their assets, real estate sources said. dealership land currently listed rangesfrom $468,933 to $593,065 per “Debt will need to be addressed and mortgages paid off as part of the said attorney Steve Snively, a partneer in the firm’s Orlando office who is not involve d in any deals relatecd to the two automakers.
“As it all winda down, all those could have somethinh to do with issues of dealingv with paymentof creditors.” Auburn Hills, Mich.-basefd Chrysler, which filed for Chapterr 11 bankruptcy protection April 30, plans to trim seven Central Florid a dealerships and 789 nationwide by June 9. Detroit-basee GM, which filed for Chapter 11 bankruptcy onJune 1, plans to cut its dealershipo ranks from 6,246 to 3,605 by October 2010, accordinyg to a document posted on its Web Although GM didn’t make publivc a list of the longtime Central Florida mainstays and are amon those slated to stop selling new Chevys, media reports said.
Roger Holle r III, vice president of the , said in a statementt that the company will continue tosell Chevrolets, issude warranties and provide service. “We’ved been here for more than 70 yeareand we’ll be here for anotherr 70 years,” he said in the Local real estate experts believer the family will find other uses for the two “Some of this is really trophy property,” said Bill director of industrial services for Collierse Arnold Commercial in Orlando, who also specializex in auto dealerships. “The Hollee people have a real eye forreal estate.
” The Holler-Classic groupo has another six Central Florida dealershipzs with the Audi, Hummer, Mazda and Hyundai brands, as well as two Hondsa dealerships. Some dealers alreadyg have plans in place tocontinue operating. For , a Chrysler dealer slated to stop sellinb new Jeep vehiclesthis month, will continu e pushing its Suzuki brand along with pre-owneds vehicles. General Manager Buddy Vickers — whose Jimmie Vickers, started the dealership in the 1970s said the family also will keep their servicedepartmenf active. “The most bitter part to this whole thin g isthat we’ve been a Jeep dealer for a long he said. “We’ve really been loyal to the brand.
” And Alan who owns Chevrolet dealerships in DeLandand St. Clourd not on the trim said he expects to go forward with plans to buy a thir d undisclosed Chevrolet dealership once all the bankruptchy falloutis over. In April, Starling sold a Chrysler dealership for $5.6 million to the Osceolaw County Sherriff’s Office. He had resigned his franchisew agreement with Chryslerin February, he said. “Gn has always said at least 50 percent of theit sales are made up from Chevrolet he said. “That’s probably the brand that will survive.” Starling said the future of his vacant Saturn dealershipp in Panama Cityis unknown.
GM wants to sell the “They haven’t been very responsive, but I think they know there’ws a problem,” he said. Starling said he has receivefd four calls from competing automakers interested in haviny him sign on for one of theie brands inthat space. The real estatd expected to come onlind may create other opportunitiesfor brokers. For example, Colliera formed , a national group that includes an Orlando operatiom to marketauto lots. CB Richardf Ellis created a national , and the Orlando office plana to name someone to headlocaol efforts.
Auto dealerships are typicallgy prime realestate sites, with great access, visibility, good signage rights and propertty well-suited to redevelopment, brokers said. “In the these tracts will be more Snively said. “It’s easier to redevelop it than if we had an existinvgshopping center.”