Carvana -- Known For Its Car Vending Machines -- Acquires A New Car Dealership With Its Own Unique Real Estate Footprint
Carvana recently acquired Jerry Seiner Chrysler Dodge Jeep Ram just months after the car dealership moved into its new digs -- an adaptive reuse of a former Sam's Club
Online used car dealer Carvana CVNA 0.00%↑ is widely known for the 40+ "car vending" machines that it has developed throughout the country.
But last week Carvana entered a new business line — new car sales — by acquiring its first new car dealership franchise.
Interestingly the dealership that Carvana purchased also has a unique real estate footprint.
Carvana acquired Jerry Seiner Chrysler Dodge Jeep Ram, an Arizona car dealership that moved into its new digs just this past summer:
It is the first tenant in a multi-dealership auto mall that was developed as an adaptive reuse of a ~140,000 square foot former Sam's Club warehouse building.
Auto park developer Mullin360 is redeveloping the former Sam’s Club building and site in Casa Grande, Arizona into a multi-dealership auto park.
The former Sam’s Club is being renovated to house multiple dealerships for the Jerry Seiner Automotive Group and Jones Automotive Center.
The Jerry Seiner Chrysler Dodge Jeep Ram dealership and service center — acquired by Carvana last week — is the first dealership to occupy the space and opened in part of the former Sam’s Club building this past summer.
The part of the building that will house Jones Ford is still under construction and will likely open in the coming months.
A brand new ~30,000 square foot dealership for Jerry Seiner Chevrolet — a separate dealership entity not acquired by Carvana — is being developed in a portion of the former Sam’s Club’s expansive parking area.
It may be ironic that Carvana’s first acquisition of a new car dealership is itself located in “unconventional” automotive real estate.
But other car dealerships are also moving into unique real estate by way of adaptive reuse.
In fact, several other former Sam’s Clubs have also been repurposed for automotive uses and include:
The largest Airstream trailer dealership in the U.S.
A family owned and operated collision repair, customization, and vehicle storage facility in Alabama
A large auto parts warehouse in Texas; and
A first-of-its kind combined Tesla dealership and self storage building in Illinois
It is unclear if Carvana’s purchase of a new car dealership that operates in a Sam’s Club is indicative of a change to its business — or real estate — model.
But it is certainly possible that other former Big Box retail sites may be repurposed for Carvana or other automotive users — especially given the thousands of store closures due to the recent bankruptcies of Big Lots, Joann Fabrics and other retailers.