The auto industry is consolidating and many auto dealers are looking at their Real Estate from a different perspective. Automotive advertising agencies that used to focus on building traffic and simply selling cars are now focused on helping auto dealers reduce expenses and access their assets to survive in today’s troubled economy. The independent affiliated automotive advertising agencies of Ad Agency Online, L.L.C. are uniquely positioned to share their resources through their communal automotive advertising resource / networking portal – http://AdAgencyOnline.Net .
AdAgencyOnline.Net hosts a blog talk radio station – WAAOL, All Automotive Advertising News All The Time – which features an open business meeting show – Lunch With Phil Discussing Automotive Advertising – that runs every Monday through Wednesday from 12:00 Noon EST to 12:30 PM EST at http://www.blogtalkradio.com/adagencyonline . Philip Zelinger, the President of Ad Agency Online, L.L.C. and host of AdAgencyOnline.Net, will be interviewing Eric Cederstrand, Tom Brown and Leon Titus from Colliers International Tacoma Washington office this Monday, August 17th 2009, to discuss the newly recognized importance and changing role of Real Estate in the auto industry.
The Tacoma office is just one local representative of a national network of Colliers International Real Estate offices that form an internal division focused on the auto industry – Colliers Automotive Real Estate Services, (C.A.R.S.). Philip Zelinger has a long standing relationship with the South Florida Colliers International Office – Colliers Abood Wood-Fay Real Estate – and he is a member of a four person team that developed the C.A.R.S. division within the Colliers International organization. Other founding members of the C.A.R.S. team include Michael T. Fay, President, Owen G. Cone, Senior Director and Clinton M. Casey, Senior Commercial Associate of the Colliers Abood Wood-Fay Real Estate office. The team has expanded C.A.R.S to include many other local offices that make up the national network who pool their resources to serve their auto dealer clients and investors.
ABOUT ERIC CEDERSTRAND – SENIOR VICE PRESIDENT
COMPANY EXPERIENCE – Eric Cederstrand has been involved in Institutional Commercial Real Estate Brokerage and Development for 20 years. He has been with Colliers International for the past 10 years and has specialized in retail and office development. Before joining Colliers International, Eric spent 10 years with CB Richard Ellis. Eric is also President of Commencement Bay Development.
SPECIALIZATION – Throughout his career, Eric has been involved in over $1 Billion dollars in real estate transactions. He is widely recognized in the South Puget Sound as an “expert” in ground-up new construction in retail and office developments. Eric focuses on Landlord representation. He and his team work through identifying market niches, site selection, conceptual design, entitlements, contract selection, tenant lease up, project management and the eventual sale of the asset. Twelve years ago Eric began to focus on the redevelopment of downtown Tacoma. The first project he put together was the historic renovation of the Schoenfeld Building for the DaVita Corporation.
Since then Eric has been involved in nineteen other significant projects in the Tacoma CBD including Thea’s Landing, the Kress/Payless renovation on Broadway, former Woolworth Department Store for AT&T Wireless, and the current renovation of the Old Tacoma Art Museum for Sound Inpatient Physicians. Currently Eric and his team are working on over 1million square feet of office, retail and fl ex-industrial space for sale or lease.
Eric is very active on the political front and has developed strong relationships with the State of Washington Economic Development Office and local County and City municipalities. These relationships are critical in moving projects forward in the current development environment.
PROFESSIONAL ACCOMPLISHMENTS – Colliers Northwest Top Performer – 9 of past 10 years, South Puget Sound “Top 40 Business Leaders Under 40,” 2008 Recipient “Union Station Award” for Tacoma-Pierce County
NOTABLE TRANSACTIONS MIXED-USE DEVELOPMENTS – Northwest Landing – Dupont, WA – master planned, entitled, leased and sold – 1,000 acre commercial development including a town center, business park and industrial properties, Thea’s Landing – Thea Foss Waterway – Tacoma, WA – 300,000 SF residential mixed-use community Port of Olympia – Tumwater Town Center
CLIENTS – Weyerhaeuser Real Estate Company, Quadrant Corporation, Opus Northwest, Panattoni Development Company, Puget Western,
Port of Olympia, Port of Tacoma, Venture Bank, DBSI, City of Tacoma, Matsushita, Davis Properties, Port of Tacoma, Kimco
ABOUT TOM BROWN – VICE PRESIDENT
COMPANY EXPERIENCE – Tom Brown joined Colliers International in 2001 and his primary focus has been on landlord and tenant representation, primarily in the retail and office sectors, with an emphasis on the development and leasing of new mixed-use projects in Pierce and Thurston Counties and the redevelopment of downtown Tacoma Historic properties.
Tom has nearly 30 years of professional achievements as a business owner and manager in the commercial furniture industry, with a strong track record in sales, business planning, space planning, and building, motivating and managing teams of high-level professionals. His commitment to customer service has established positive long-term relationships with his many clients and professional peers.
PROFESSIONAL ACCOMPLISHMENTS – Colliers Northwest Top Performer – 2003, 2004, 2005 and 2006
NOTABLE TRANSACTIONS PROPERTY SALES: Old City Hall – Tacoma, Union Bank of California- Tacoma, Security Building – Tacoma, Park 167 Flex Building ($14 million) – Auburn, Sea Way Industrial Park ($14 million) – Everett, Quadrant Homes Project Office – Dupont, Venture Bank – Northwest Landing – Dupont, Armor Building – Tacoma, Security Building ($6.2 million) – Tacoma, Northwest Landing – Dupont, WA – master planned, entitled, leased and sold – 1,000 acre commercial development including a town center, business park and industrial properties Port of Olympia – Tumwater Town Center
MAJOR LEASING – Dupont Station (retail/office), Barksdale Station, Williamson Place, Industrial Place – Northwest Landing – Dupont, Freedom Pointe Plaza (retail) – Lacey, Venture Bank – South Sound area orizon Pacific – Tacoma, Old City Hall – Tacoma, One Pacific Building – Tacoma, Courtyard by Marriott – Tacoma, Sea Grill – Tacoma, Union Bank of California – Tacoma, Thea’s Landing – Tacoma
CLIENTS – Weyerhaeuser Real Estate Company, Quadrant Corporation, Opus Northwest, Panattoni Development Company, Puget Western, Port of Olympia, Venture Bank, DBSI, City of Tacoma, Davis Properties, Linmar Real Estate Investment, Harsh Properties
ABOUT LEON TITUS – ASSOCIATE
COMPANY EXPERIENCE – Leon Titus has been involved in the sales and automotive industry for over 25 years and became a part of the professional sales team at Colliers International’s Tacoma office in 2009. Prior to joining Colliers, Leon was the President of Leon Titus Automotive Group for the past 7 years. He was also the General Manager of Budget Car & Truck Rental and Car Sales of Tacoma-Pierce County, where his team increased sales from $1 million to over $10 million in revenue.
SPECIALIZATION – Leon joined Colliers International to specialize in the sale and lease of Washington’s automotive and marine dealerships and adjacent land. With his prior experience in the automotive industry, he is using his targeted knowledge and skill set to specialize in helping automotive and marine dealers with the sale and lease of their properties. Another aspect of his specialization will include the repositioning of former automotive and marine properties for future use. Upon joining Colliers, he has formed the Automotive Real Estate Group, which is geared towards providing real estate resources and consulting for clients needing showroom and exterior lot space, as well as clients looking to transition their properties towards another use.
The following article that appeared in the Puget Sound Business Journal was provided by the Colliers International Tacoma office to expand on their current market situation and relationship with C.A.R.S.:
Friday, June 26, 2009 Brokers specialize in dealership transactions
Puget Sound Business Journal (Seattle) – by Greg Lamm
With a dozen Puget Sound area car dealerships for sale, and another dozen likely to join them this year, the crash of the nation’s auto industry is hitting local real estate circles. The culling of franchise-holders by GM and Chrysler is also giving stronger dealers a chance to grab better locations,and opening up other car lots for uses such as retail and office space.”The landscape is going to change as we go forward,” said Leon Titus III, a veteran local dealer who recently joined with a pair of real estate brokers to form a dealership property specialty team at Colliers International in Tacoma.
Colliers connected Titus with two veterans of the local commercial real estate world to form a group devoted to selling, leasing and repositioning dealership properties. The specialty team – branded the Northwest Region Colliers Automotive Real Estate Services Group (CARS) – fully expects to stay busy. “Right now everybody is trying to figure out where it’s going and how quickly the change is going to happen,” said Titus, who has 25 years of experience working in the family auto business. “Currently there are about a dozen new-car dealerships on the market in the Puget Sound region,” said Eric Cederstrand, a senior vice president at Colliers International Tacoma, who also is on the CARS team. Some of the dealers have gone bankrupt, Cederstrand said, and some are just shutting down.
Currently, there are about 312 new-vehicle dealers in the state, according to the Washington State Auto Dealers Association. That’s a 9 percent decline since January 2008. The association anticipates another dozen or so dealerships will close in the state this year. Of the 789 dealerships that Chrysler says it is closing, 15 are in Washington, including three in Pierce County. GM has not made public its list of the hundreds of dealerships it plans to close across the nation in the next 18 months. The upheaval has created opportunities for some dealerships looking to grab market share and prime spots in a retail industry that seems to be rapidly consolidating.
In May, Rainier Automotive Group sold two of its three dealerships. One of the buyers was Ford of Kirkland, which purchased Rainier’s Eastside Hyundai dealership in Kirkland for an undisclosed price. In the other sale, Eastside Subaru of Kirkland was sold to Bruce Titus Automotive Group, also for an undisclosed price. Bruce Titus and Leon Titus are brothers. Leon Titus and his team at Colliers were not involved in that deal.
Similar jockeying was on display in February, when Larson Motors Inc. bought property and buildings that housed two dealerships: Nissan of Fife and the Chrysler franchise in Puyallup. Those acquisitions expanded Larson’s dealerships to eight, selling 11 vehicle brands. Larson Motors took over Nissan of Fife from the former owners, including Kevin and Mary Byrne. Larson paid $8 million for the land and the 14,500-square-foot building just off Interstate 5. Some of the dealership sales predate the worst of the current recession. In August, Larson bought the property that houses a former Chrysler franchise in Puyallup. The $7.4 million deal allowed Larson to move to a larger location about a mile away from the former lot. The old Larson site opens up some opportunities for other uses, said Puyallup City Manager Gary McLean. The property is on the city’s River Road, which meanders along the Puyallup River, and could be attractive, McLean said, for retail or recreational use.”It would be nice to take advantage of the riverfront,” McLean said.
Sometimes, the highest and best use of vacant dealership sites might not be another car dealership, said Tom Brown, the third member of the Colliers CARS team. His expertise includes working with commercial landlords and tenants. Location will still drive price, with many dealerships in prime, high-traffic spots. Another factor is the quality of the buildings. GM and other automakers are putting more emphasis on the quality of stores, forcing dealers to maintain “signature” showrooms. That means that owners of older stores are being forced to upgrade or look for newer facilities. One change already happening on the East Coast is that some dealers are locating stores in heavy traffic areas, but choosing to locate service centers out in the hinterlands, where land is cheaper.
In Florida – where the Colliers CARS focus has been in play for several years – brokers are starting to see interest from big institutional investors looking to buy up dealership real estate. That isn’t happening in the greater Seattle area, but there will be more consolidation, Cederstrand said, with large groups controlling more dealerships. “I think the days of the single store may be coming to an end, just because of the capital needed to maintain and upgrade dealerships,” Cederstrand said.
Meanwhile, some of the properties in the Northwest are being marketed with their carmaker brands, which – depending on the make -can add value. But some properties won’t have dealership affiliation. That is where the Colliers team hopes to weigh in, providing advice on valuations for these dealerships, many of which have been owned by families for generations. “We are positioning ourselves in the marketplace to help these dealers out,” Brown said, “to actually give some true value on what their facility is worth with a dealership and without a dealership.”Brown and his fellow CARS team members have been meeting with potential clients in Washington, Oregon and California. They say by building a nationwide network, Colliers will be in a good position to work with potential new players in the market – possibly carmakers from India and China.
About Philip Zelinger
Philip Zelinger is the President of Ad Agency Online, LLC and founder of AdAgencyOnline.Net. He invested 25 years as a General Manager and Dealer Principal followed by his last ten years in the automotive advertising industry learning from the teams that he built so he can now presume to teach on forums like AdAgencyOnline.Net. His role as a “Dealer Coach” is enhanced by his hosting a nationally recognized auto industry social networking portal and blog talk radio station – WAAOL, All Automotive Advertising News All The Time. As the author of two books on the auto industry, including “How To Sell A Car – a Career Guide to The Automobile Industry,” he is a recognized authority on market trends and developing technologies with the responsibility of selecting key vendors and applications for his dealer clients as well as forming strategic partnerships for his vendor clients to leverage their shared resources to help them bring their products and services to market.
About AdAgencyOnline.Net and Ad Agency Online, L.L.C.
AdAgencyOnline.Net reviews automotive advertising vendors and new technologies on several blog talk radio shows in addition to the Lunch With Phil Discussing Automotive Advertising. Other shows include “Lunch With Ralph Discussing Automotive Advertising” and “Automotive Advertising Experts.” The shows attract automotive advertising agencies, auto dealers, auto industry vendors and O.E.M. representatives that listen to WAAOL to find vendors, applications and technologies to maximize the R.O.I. for their automotive advertising dollars.
AAOL is a national network of independent affiliated automotive advertising agencies linked by an online communication / distribution system developed by Philip Zelinger. The proprietary operating system that powers AAOL was designed to reduce fixed and semi-variable expenses for full service automotive advertising agencies. The developing technologies that enhanced the performance of the independent automotive advertising agencies linked by AAOL has served as the role model for the solutions suggested on AdAgencyOnline.Net and represented by AAOL to their affiliated automotive advertising agencies when serving their auto dealer clients.
Ad Agency Online L.L.C is focused on discovering and representing new automotive advertising vendors not yet recognized by the mainstream automotive advertising industry. Recent automotive advertising vendors represented by AAOL include; Argistics – AutoTransaXion, EveryCarListed.Com, DealMaker.Com, CityTwist.Com, Bulldog Marketing Technologies, LeadConverter, Gumiyo, Kihon Media, CarFolks.Com, Ai Dealer, NeoSynergy, Laser Stream Video and Winked-In.Com; to name a few.
For more information on Philip Zelinger, Ad Agency Online, L.L.C., Colliers International of Tacoma, C.A.R.S. or any of the preferred automotive advertising vendors previously reviewed on WAAOL, auto dealers and automotive advertising agencies should contact Philip through AdAgencyOnline.Net. Automotive advertising vendors, automotive advertising agencies and auto dealers that would like to be considered as a “preferred automotive advertising vendor” on AdAgencyOnline.Net and/or to hire/join Ad Agency Online, L.L.C. can contact Philip Zelinger at firstname.lastname@example.org, call him at 888-796-2228 or visit AdAgencyOnline.Net at https://adagencyonline.net. To quote Philip Zelinger, “Help is only a click away!” ###