However Marcelle doesn’t be expecting Legacy Automobile to faucet the billion-dollar capitaltreasury this month. It could most likely pluck a do business in use loads of hundreds of thousands of greenbacks, the sort that can be finished via a community auto store, he mentioned.
Marcelle mentioned Legacy has now not but closed any offer with a community dealership workforce, however he mentioned the company is in “active discussions” with a minimum of one community store that he declined to spot.
Legacy Automobile additionally is helping substitute conventional lending from banks, as used to be the case in a do business in this summer time.
The corporate on June 1 bought the actual property for Undertaking Viejo Infiniti in California from car store Brett Oubre and his bundle spouse, Lonnie Bennett.
Oubre, who mentioned he owns six alternative franchised dealerships, mentioned Legacy’s investment helped him entire the purchase of the bundle Infiniti awarded.
Proudly owning the dealership feature is “very similar to having frozen capital in the parts department, having frozen capital in your used-car curtailments and other areas of the dealership,” Oubre mentioned. “You basically have frozen capital in your real estate that you can’t deploy for a return.”
Some banks even have begun to touch the corporate in what Marcelle described as “syndicate” offer, the place banks seems for a company like Legacy Automobile to spend money on offer with upper worth tags.
And a few sellers have inquired about Legacy Automobile partnering and making an investment in unedited dealerships, alike to what an organization similar to Franchise Fairness Companions would possibly do, but it surely hasn’t but, Marcelle mentioned. That would come, however for now, Legacy’s buy-sell involvement is with the actual property.
“You couldn’t ask for a better landlord,” Dennis mentioned. “As far as the terms of the lease, they’re very standard, no surprises. It was a quick and easy closing; they really know the industry.”
Dennis & Co. decided to promote houses to Legacy Automobile that area its Kia of West Nyack bundle in Unused York, which it obtained in 2016, and a Chrysler-Jeep-Dodge-Ram dealership in Clifton Soil, N.Y., which it bought in August 2022 from James Zappone.
