Why Several Former Sam's Clubs Have Been Converted Into Collision Centers and Automotive Dealerships
Several former Sam's Club buildings have been repurposed as auto dealerships, collision centers, auto parts supply warehouses and car storage facilities
When Walmart closed 60 of its U.S. Sam’s Club stores in January 2018, few would have predicted that the ~140,000 square foot buildings that were vacated would be converted into car dealerships and collision centers.
But 7 years later several former Sam’s Clubs have been repurposed for automotive uses including:
An “auto mall” in Arizona that will be home multiple car dealerships such as Jerry Seiner Chrysler and Jones Ford
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
So why has automotive been a popular adaptive reuse of Sam’s Club buildings?
The 60 Sam’s Club closings in January 2018 resulted in over 8 MM square feet of vacant retail real estate.
But only 1/3 of these former Sam’s Club buildings now have a retail use.
Why?
Because 41 of the 60 clubs shuttered in 2018 had been corporately owned by Walmart.
And Walmart not only rarely sells properties to its competitors but also places use restrictions on buildings that it sells to real estate developers.
This prevented Walmart's direct rivals like Costco, BJ’s Wholesale Club, Target and Amazon from locating in many — though not all — of the former Sam's Club sites.
But automotive uses did not provide a direct competitive threat to Walmart.
Additionally, the former Sam’s Club buildings are well suited for automotive-related uses.
Most were freestanding buildings with high ceilings, open floor plans, and grade level doors which can work well for vehicle sales, storage and service.
Plus they were located on large land parcels with plenty of parking, good access and excellent signage.
Many Sam’s Clubs had even offered tire sales and auto service — and thus were already a “known” destination for automotive uses.
A Collision Repair Center and Car Storage “Vault” in Alabama
One former Sam’s Club in Irondale, Alabama was acquired by Classic Car Motoring, a family owned business that has operated for 45 years.
Classic Car Motoring converted the ~140,000 square foot former Sam’s Club into a collision repair center, customization and vehicle storage facility.
The facility features a 19,000 square foot area for collision repair and accessory installation on commercial size vehicles such as the Sprinter, Ford Transit, and Ram ProMaster.
It is also the only repair center in Alabama that is authorized by both Mercedes-Benz and Tesla.
Classic Car Motoring turned 12,000 square foot of space into a "vault" that stores over 100 vehicles for car owners that do not have room at home.
There are even five acres of outside space and a 17,000 square foot indoor “club” area — complete with on-site catering kitchen — that can be rented for events such as car shows, cruises, meetings or parties.
The Largest Airstream Dealership Is A Former Sam’s Club
Another unique Sam’s Club-to-automotive conversion is the We Are Airstream dealership in Chandler, Arizona.
At 136,000 square feet, the We Are Airstream Superstore is the largest U.S. dealership for Airstream trailers, an American brand best known for its rounded and polished coaches.
A climate controlled sales showroom makes up ~40% of the dealership building with service and storage in the remaining area.
A Former Arizona Sam’s Club Is Being Transformed Into An Auto Mall
Auto park developer Mullin360 is redeveloping a 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 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 is being developed in a portion of the former Sam’s Club’s expansive parking area.
Auto Parts Warehouse and Distribution Center in Texas
A Sam’s Club in San Antonio, Texas is now a warehouse and distribution center for Autofit, a wholesale auto parts supplier.
Autofit carries a wide selection of aftermarket OEM auto parts, reinforcements such as hinges, fenders and handles, paint supplies and even custom chrome grilles, door handles and mirrors.
The Company also operates warehouses in Phoenix, Dallas and Houston.
A Combination Tesla Dealership and Self Storage Facility
A unique Sam’s Club-to-automotive conversion is currently underway in Illinois.
Last year public officials in Batavia, Illinois approved the conversion of a former Sam’s Club into a joint self-storage facility and Tesla dealership.
Tesla will be occupying ~45,000 square feet of the 120,000 square foot former Sam’s Club and take the entire storefront of the existing building.
The remaining ~80,000 square feet — and a proposed ~45,000 square foot second floor addition — will be climate controlled self storage operated by Cubesmart.
The project requires a demise of the Sam’s Club building and a site layout that can accommodate cars, delivery trucks, and Tesla customers.
Driveways, landscaping and lighting designs are being modified to direct self storage and dealership users to separate areas at the site — and four separate permits were required for site development, Landlord’s work to deliver space to Tesla, the self-storage buildout and Tesla’s tenant work.
Will even more Sam’s Club sites be repurposed for automotive use?
Perhaps — but it will likely require another significant round of closings since over 90% of the Sam’s Clubs that were closed in January 2018 have now been repurposed, re-tenanted or redeveloped.