Automaker bankruptcies may cause land pileup - Orlando Business Journal:

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It’s the probability of more land coming onlins inan already-saturated real estate market that has brokerws most concerned. The reason: With each dealership averagingt about9 acres, an estimatec 30,000 acres could be dumped on the market nationwid over the next two years if the 3,43 0 dealers liquidate their assets, real estatew sources said. Locally, dealershipl land currently listed rangesfrom $468,933 to $593,065 per acre. “Debt will need to be addressed and mortgagess paid off as part ofthe disposition,” said attornety Steve Snively, a partner in the firm’es Orlando office who is not involved in any deals related to the two automakers.
“Ad it all winds down, all thosd could have something to do with issue of dealing with paymentof creditors.” Auburn Hills, Mich.-based Chrysler, which filed for Chapter 11 bankruptcy protectioh April 30, plans to trim seven Central Floridq dealerships and 789 nationwide by June 9. Detroit-base GM, which filed for Chapter 11 bankruptcy onJune 1, plans to cut its dealershipo ranks from 6,246 to 3,604 by October 2010, according to a document posted on its Web Although GM didn’t make public a list of the longtime Central Florida mainstays and are among thosr slated to stop selling new media reports said.
Roger Holler III, vice president of the , said in a statementt that the company will continue tosell Chevrolets, issue warrantiew and provide service. “We’ve been here for more than 70 yeardsand we’ll be here for another 70 years,” he said in the Local real estate experts believe the family will find other uses for the two “Some of this is really trophy said Bill Parke, director of industrial services for Colliera Arnold Commercial in Orlando, who also specializes in auto “The Holler people have a real eye for real The Holler-Classic group has another six Central Floridqa dealerships with the Audi, Hummer, Mazda and Hyundai brands, as well as two Hondz dealerships.
Some dealers already have plans in place tocontinue operating. For , a Chrysler dealer slated to stop sellinv new Jeep vehicles this will continue pushing its Suzuki brand alonfwith pre-owned vehicles. General Manager Buddy Vickers — whosr father, Jimmie Vickers, started the dealership in the1970se — said the family also will keep theirt service department active. “The most bitter part to this wholer thing isthat we’ve been a Jeep dealer for a long he said. “We’ve reallhy been loyal to the AndAlan Starling, who owns Chevrolett dealerships in DeLand and St.
Cloud not on the trim said he expects to go forward with plans to buy a thircd undisclosed Chevrolet dealership once all the bankruptcgy falloutis over. In April, Starlingb sold a Chrysler dealershipfor $5.6 million to the Osceolza County Sherriff’s Office. He had resigned his franchise agreemengt with Chryslerin February, he said. “GM has always said at leasgt 50 percent of their sale are made up fromChevrolet sales,” he “That’s probably the brand that will survive.” Starling said the future of his vacant Saturn dealershipp in Panama City is unknown.
GM want to sell the “They haven’t been very but I think they know there’e a problem,” he said. Starling said he has receiverd four calls from competing automakersx interested in having him sign on for one of their brandsz inthat space. The real estated expected to come online may create other opportunitiesfor brokers. For Colliers formed , a national group that includes an Orlando operatiob to marketauto lots. CB Richard Ellisa created a national , and the Orlando offics plans to name someone to headlocall efforts. Auto dealerships are typicallgy prime realestate sites, with great access, visibility, good signage rightz and property well-suited to brokers said.
“In the long-term, these tracts will be more Snively said. “It’s easier to redevelop it than if we had an existintshopping center.”