Chapman Automotive is on track to move its Mercedes-Benz dealership to a new location on Tucson's east side in midsummer.
The six-acre dealership at 6350 E. Grant Road will have about 90,000 square feet of building space, said Ted Chapman, president of the Tucson operations of Chapman Automotive Group.
The location on Grant and North Wilmot roads had been home to Saturn of Tucson until General Motors announced it was shutting down the brand.
Chapman, which had for years been looking to expand its Mercedes-Benz dealership, decided to move it to the Grant Road location after the company wound down its Saturn service department.
At the new location, Chapman said the automotive group will be able to double its service capacity and expand its inventory.
"We had really been taxed in our current location," he said.
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Chapman said his company hasn't decided what it will do with the property on East Speedway just west of North Wilmot Road where the current Mercedes dealership is located. There are no plans to sell it, he said. "We're just going to sit on it," Chapman said.
Scott Soelter, senior vice president with the commercial-real-estate firm Grubb & Ellis, said Chapman has the right idea when it comes to putting off any potential sale of that property.
"There aren't that many aggressive buyers out there," Soelter said. The location could lend itself to multiple uses given its high profile location along Speedway, Soelter said. While it could be suited to a restaurant, continuing an automotive use could prove beneficial as those locations have specific zoning requirements, Soelter said.
When it comes to Chapman's new location, Soelter said that Mercedes is a destination brand that by itself can attract customers.
While the automobile industry has been hit hard in the economic downturn, Chapman said many are anticipating a growth in sales to come soon.
There's likely pent-up demand and the new Mercedes location should be able to seize on that, he said.
Chapman also sells Acura, Honda, Audi, Volkswagen and Porsche vehicles at dealerships on East 22nd Street near South Swan Road.
Did you know
Chapman Automotive Group took control of Saturn of Tucson, 6350 E. Grant Road, in October 2008 from Beaudry Motor Co.
The Saturn dealership was at 6020 E. Speedway until 2005, when Beaudry worked out a deal to trade spots with Emich Subaru, which had been at the East Grant Road site.
Contact reporter Dale Quinn at dquinn@azstarnet.com or 573-4197.