03-25-2013, 11:42 AM | #1 |
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Bankrupt Toyota/Scion Dealership sold for $18.7 Million
A press release from Development Specialists, Inc. indicates that the assets of St. Augustine Toyota/Scion have been sold to Michael D. Beaver, owner of Beaver Toyota in Santa Fe, NM for $18.7 Million. Here's a link to the press release - click here
The press release caught my attention because I remember seeing an ad in Automotive News soliciting a "stalking horse" bid for the dealership. At the time I wasn't familiar with the "stalking horse" term and I thought it was odd that a Toyota dealership would fall into Chapter 11 bankruptcy. The press release indicates St. Augustine Toyota/Scion was last purchased in September, 2007 for $12 Million and another $16 Million was spent on the dealership's facility. The recession and the inventory shortage associated with the earthquake in Japan were reasons cited for the dealership's bankruptcy. In my eyes it appears Mr. Beaver made a great purchase - he's getting an operational Toyota/Scion dealership that the previous owner had $28 Million invested in for $18.7 Million. |
03-26-2013, 08:05 PM | #2 |
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This is St Augustine FL, not New Mexico or the SW region.
This store has changed hands at least four times since 1990, when it was dualed with Pontiac on Highway US1 when Ben Smith bought it. St Augustine is a low volume market, which is a half hour drive from Jacksonville FL that has a large population and (over 1.5 million residents) blue collar area with a reputation for rough credit. St Augustine is a fixed income retiree and tourism based community. The Ford/Lincoln store has been owned by the same family for over sixty years, and is known as a non Metro market powerhouse for Ford in the Florida zone office. Jax also is home to most of the OEM/Importers regional offices and their parts warehouses. Most of the new car dealers in Jax are huge palace type operations with large inventories and huge advertising $$$$ being spent by these stores in the Jax ADI that St Augustine in part of. This is not an easy auto pilot deal by any means. |
03-27-2013, 07:45 AM | #3 |
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If i had 18.7 million i would be fishing or drag racing somewhere not buying a dealership lol
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03-27-2013, 12:52 PM | #4 | |
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Quote:
When I think of Florida and Toyota I automatically assume all of the stores must be goldmines. That said, I don't know that market area and you clearly do. It will be interesting to see how the dealership performs under the new ownership. It was also interesting to learn the store has been sold four time since the 90s. |
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03-27-2013, 01:04 PM | #5 |
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Maybe not such a great deal afterall.....?
After reading rd3311's post I did some more digging because I was surprised the press release mentioned the $18.7 Million purchase price included $10 Million in Blue Sky.
When I found the ad that appeared in Automotive News I noticed it stated the auction did not include the land underneath the dealership. I'm guessing it's a leasehold property where the dealership owner owns the facility but has to pay a monthly fee to rent the land. Here's the ad that appeared in Automotive News: |
03-27-2013, 01:14 PM | #6 |
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World Omni Financial Corporation was the lender
Based on published report it appears World Omni Financial Corporation was the lender for St. Augustine Toyota/Scion and had loaned over $20 Million to the dealership in the form of flooring loans, capital loans and mortgage loans. Here's a link to the report - click here
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