A subsidiary of Asbury Automotive Group, one of the largest automotive retailers in the United States, has purchased the site of a vacant manufacturing plant in Dallas to redevelop into a luxury car dealership.
Park Place Dealerships, a part of the publicly traded Duluth, Georgia-based automotive group, acquired the 15-acre property at 6000 Lemmon Ave. from aerospace and defense manufacturing giant Raytheon Technologies, now known as RTX, for an undisclosed sum. The aerospace manufacturer closed the facility a year ago, citing declining business and budget cuts.
Park Place Dealerships plans to develop a state-of-the-art Porsche dealership on the property that offers clients a luxury experience, officials said. The aging industrial plant is scheduled for demolition in early 2025, with construction on the luxury dealership near Dallas Love Field airport expected to be complete by mid-2027.
"This prime location, just steps from our current dealerships and minutes from Love Field, ensures Porsche and Volvo enthusiasts will have access to the very best these brands have to offer," said Tony Carimi, area vice president for Park Place Dealerships, in a statement. Park Place Dealerships did not immediately have renderings to share of the new dealership with CoStar News.
In addition to the Porsche dealership, the land purchase will also allow the company to build a Volvo service center beside its Park Place Volvo dealership at the corner of Lemmon Avenue and Inwood Road. By having a combined showroom and service experience on what will essentially be one property, Park Place said it will offer a seamless experience to its Volvo clients.
The property acquired from RTX was last valued for the Dallas County tax rolls at nearly $17.5 million. The development costs of the new automotive development were undisclosed.
David Davidson, partner at Dallas-based Davidson & Bogel Real Estate, said creating this "off-market opportunity" for Asbury and Porsche on the largest property along Lemmon Avenue in Dallas has been a career highlight.
In recapping the deal, he said, "Park Place’s planned development will not only give life to one of the most highly trafficked corners in the Dallas core but also contribute to the city’s continued growth as a premier destination for luxury sales."
Industrial property pricing has remained the strongest in the Dallas-Fort Worth region in the urban core, CoStar's market analytics team said in its latest market report. The pricing details of a vacant industrial plant turned luxury automotive dealership are a little harder to pinpoint given the demolition costs tied to the property.