Automaker bankruptcies may cause land pileup - Orlando Business Journal:

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It’s the probability of more land comingf online inan already-saturated real estate markeft that has brokers most concerned. The reason: With each dealership averaging about9 acres, an estimates 30,000 acres could be dumped on the market nationwide over the next two yearsd if the 3,430 dealers liquidate their real estate sources said. Locally, dealershil land currently listed rangesfrom $468,933 to $593,06 per acre.
“Debt will need to be addressesd and mortgages paid off as part of the said attorneySteve Snively, a partner in the firm’s Orlando office who is not involveed in any deals related to the two “As it all winds down, all those coulf have something to do with issues of dealingy with payment of Auburn Hills, Mich.-based Chrysler, which filed for Chapter 11 bankruptcyy protection April 30, plans to trim seven Centra Florida dealerships and 789 nationwide by June 9.
Detroit-based GM, whichg filed for Chapter 11 bankruptct onJune 1, plans to cut its dealershio ranks from 6,246 to 3,605r 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 those slatec to stop selling new Chevys, media reports Roger Holler III, vice president of the , said in a statementg that the company will continue to sell Chevrolets, issu warranties and provide service. “We’v e been here for more than 70 yearsand we’llp be here for another 70 he said in the statement.
Local real estate experts believe the family will find other uses for thetwo “Some of this is really trophy said Bill Parke, director of industrial servicez for Colliers Arnold Commercial in Orlando, who also specializes in auto “The Holler people have a real eye for real estate.” The Holler-Classicd group has another six Central Floridsa dealerships with the Audi, Hummer, Mazda and Hyundaj brands, as well as two Honda dealerships. Some dealers alreadyt have plans in place to continue operating. For instance, , a Chrysler dealer slated to stop selling new Jeep vehicleasthis month, will continue pushing its Suzuki brand along with pre-ownedd vehicles.
General Manager Buddy Vickers — whose Jimmie Vickers, started the dealership in the1970se — said the family also will keep their servicee department active. “The most bitter part to this whole thinf isthat we’ve been a Jeep dealer for a long time,” he “We’ve really been loyal to the brand.” And Alan Starling, who owns Chevroleyt dealerships in DeLand and St. Cloud not on the trim said he expects to go forward with plans to buy a thirde undisclosed Chevrolet dealership once all the bankruptcy falloutgis over. In April, Starling sold a Chryslee dealershipfor $5.6 million to the Osceola County Sherriff’ss Office.
He had resignerd his franchise agreement with Chryslerin February, he “GM has always said at least 50 percent of theit sales are made up from Chevrolet he said. “That’s probablt the brand that will survive.” Meanwhile, Starling said the future of his vacantt Saturn dealership in Panama City is GM wants to sellthe brand. “They haven’t been very but I think they know there’s a he said. Starling said he has receivesd four calls from competing automakers interested in having him sign on for one of theifr brands inthat space.
The real estate expected to come onlin e may create other opportunities for For example, Colliers formed , a nationak group that includes an Orlandpo operation to market auto lots. CB Richard Ellis createf a national , and the Orlando officse plans to name someon e to headlocal efforts. Auto dealerships are typically primse realestate sites, with great visibility, good signage rights and property well-suited to brokers said. “In the long-term, these tracts will be more attractive,” Snively “It’s easier to redevelop it than if we had an existinhgshopping center.
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