5-Acre Lynnwood Dealership Site Acquisition for Kuni Lexus
Kuni Automotive (Kuni Lexus) · Lynnwood, WA
Represented by Mike Hemphill, The Andover Company
- Before16,700 SF building on 1.5 leased acres
- Need5-acre site for a 30,000 SF showroom and service building
- SearchMore than a year, client identity kept confidential
- Price$4.5 million, below market
Challenge
Kuni Automotive, a dealership group with eight locations, ran its Lexus dealership from an overpriced leased property: a 16,700 SF building on 1.5 acres in Lynnwood, Washington. It needed to buy a 5-acre site to build a larger dealership with a 30,000 SF showroom and service building.
Kuni interviewed Mike Hemphill of The Andover Company and hired him to represent it on the assignment.
Strategy
The search covered a very small, specific market area. Andover kept Kuni's identity confidential in negotiations until disclosure was needed, which maximized Kuni's leverage.
Over more than a year, Andover scoured sites and talked with owners to narrow the field to three. Offers went out on listed sites and on unlisted sites that looked promising. The clear first choice was a 5-acre site with high exposure in an ideal location.
Results
Andover negotiated a below-market land purchase of $4.5 million with attractive due diligence terms, so Kuni understood the property and how it could be developed before closing.
The larger site gave Kuni more visibility and access for its expansion. The new Kuni Lexus dealership has thrived since opening, with sales that surpassed every projection by Lexus and Kuni Automotive.
Related services
Adapted from The Andover Company's published case study. Represented by Mike Hemphill of The Andover Company. Ben Hemphill now works alongside Mike Hemphill.
