82.1 F
San Fernando
Thursday, Mar 28, 2024

Franchises Expand, Remodel in Area

The workmen moving the planter outside of Acura of Glendale created a loud scraping noise but Jeanne Brewer knew it could be worse. As the general manager of the dealership, Brewer endured a recently completed remodeling the gutting of sections of the main buildings to give it that Acura image. “When you are in a remodeling project it disrupts the process; dust is everywhere,” Brewer said. “I liked my contractor but it was a happy day when they moved their stuff out.” Located on the Brand Boulevard of Cars, the Acura dealership is not alone in having its space revamped for a modern look inviting to potential buyers. Within walking distance of Brewer’s business numerous dealerships can be seen in various stages of expansion and remodeling projects. From the San Fernando Valley up to the Santa Clarita and Antelope valleys, car dealerships are expanding. Nearby to the Acura dealership, Pacific BMW is constructing a brand-new four story facility to give customers what operations manager Reggie Louie calls the “BMW experience.” Pacific is in the top 10 BMW dealerships in the nation, selling 250 to 300 cars a month, Louie said. While both the Glendale Acura and Pacific build for the future, the short-term challenge was continuing cars sales in the face of construction work. “We’ve actually maintained sales through all this construction,” Louie said. “We’re operating out of half of our showroom area. We used to have two lots and one is knocked down.” The two dealerships faced different circumstances leading to their building projects. The Acura’s home in Pasadena wasn’t cutting it anymore after 19 years, leading to the move to Glendale that provided more space. In her office, Brewer kept a picture of what the Glendale location looked like when she moved in January 2005 and would ask herself what she needed to do to change the look of the building. “It’s good motivation when it is staring you in the face,” Brewer said. With land at a premium along Brand Boulevard, Pacific had no choice but to build up to accommodate a showroom, administrative offices and two floors of parking. Car dealers also find a surge in sales in areas with booming populations, including Santa Clarita recently ranked No. 18 in Money magazine’s best small cities to live list and Lancaster, the fastest growing city in Los Angeles County. “We have a commuter economy,” said Vern Lawson, Lancaster’s director of Economic Development and Redevelopment. “We have close to 55,000 people who drive out of the area every day. Because of that cars are obviously very important to our citizens.” Two dealerships look to expand at the auto mall in Lancaster. Lancaster Honda will expand onto a six-acre site, while Sierra Toyota purchased four acres that owner Jim Hawse said will eventually be turned into a new dealership. In the short term, a remodel will take place to triple the size of the showroom and double the size of the service department. The reason for the expansion is growth in his business and with Toyota in general, Hawse explained. The appeal of Toyota’s products are in their reliability and design, Hawse said, plus the company overall gets a product to the market at the right time. As an example, Hawse pointed to the hybrid lines of vehicles Toyota produces that are selling well. “They have the technology and they have the product,” Hawse said. “They’ve gotten the jump on everybody on that.” Mercedes-Benz captured a growing market in the Santa Clarita Valley with the December opening of its first new dealership in Southern California in 20 years. Co-owner Kevin Malone had approached officials with the German car maker previously about opening a dealership but was rebuffed. Six months later, Mercedes changed gears after researching the potential market and now Mercedes-Benz of Valencia outperforms its expectations by selling nearly 100 cars a month. “This area was a secret for such a long time,” said Malone, who moved to the area in 1998 when he came to work for the Los Angeles Dodgers. “But it’s grown so fast and there’s so much growth taking place and planning going on that Mercedes Benz recognized the need for a dealership out here.” While Malone’s venture which he co-owns with businessman Lenny Sage and Hall of Fame baseball player Eddie Murray found getting the dealership sited and built took five years. Getting the city, Newhall and Mercedes-Benz all on the same page presented a challenge. “All three recognized this was a good opportunity and over the course of time and through many meetings we were able to overcome those challenges,” Malone said. Malone and his partners first faced establishing a relationship with Santa Clarity city officials to move ahead with permitting and other requirements. Then came finding the right site, which turned out to be the Valencia Auto Mall, part of the Valencia Gateway project developed by Newhall Land and Farming Corp. A lawsuit against the city and Newhall over environmental concerns took nearly 18 months to resolve.

Featured Articles

Related Articles