McGeorge Toyota’s main store at 9319 W. Broad St. now operates as Ourisman Toyota. (BizSense file photos)
There’s a clearer view of how much the McGeorge family fetched from the recent sale of its Richmond-area auto dealerships.
Its four locations – two McGeorge Toyota stores and two Mercedes-Benz of Richmond stores – sold for a combined $47 million, according to local real estate records.
That price tag was just for the dealerships’ real estate and does not include the consideration paid for the businesses themselves. That side of the sale is likely considerably higher than the real estate prices, though the parties did not disclose any financial details of the deals.
The real estate for the Toyota dealerships at 9319 W. Broad St. and 7705 W. Broad St., both in Henrico County, sold for $18.3 million and $6.2 million, respectively. The buyer was Graham Ourisman Automotive out of Northern Virginia and the deal closed in late September.
The two Mercedes dealership properties, at 12200 Midlothian Turnpike in Chesterfield and 8225 W. Broad St. in Henrico, sold earlier this month for $11.5 million and $11.3 million, respectively. The buyer for that pair was Miami-based Murgado Automotive Group.
Mercedes-Benz of Richmond was one of McGeorge’s two Mercedes stores sold in the deal.
The Toyota dealership at 7705 W. Broad St. sits on 4 acres and was most recently assessed at $5.1 million. The location at 9319 W. Broad sits on nearly 10 acres and was assessed at $16 million.
As for the Mercedes properties, 12200 Midlothian Turnpike sits on 4 acres and was assessed at $9.1 million and 8225 W. Broad St. sits on 3 acres and was assessed at $8.9 million.
The deals mark an end to the McGeorge family’s six-decade run in the auto business. David R. McGeorge started the company in 1955 when he purchased a Mercedes-Benz dealership in Richmond. The company had most recently been run by his grandson, Rod McGeorge, who was the seller in these recent deals.
For Graham Ourisman and Murgado, the acquisitions mark their debut in the Richmond market.
Murgado now owns 26 dealerships, with its other in Florida, Illinois and New Jersey, where it sells brands including Acura, Alfa Romeo, Audi, Bentley, BMW, Buick, Cadillac, Ferrari, GMC, Honda, Infiniti, Maserati, Mazda, Porsche and Volkswagen.
Graham Ourisman is part of publicly traded Graham Holdings Co. and owns six other auto dealerships, all in the Washington, D.C., area, including Lexus, Honda, Jeep, Ford and Toyota stores.
Murgado and Graham Ourisman aren’t the only out-of-town dealers expanding into Richmond.
Ohio-based Great Lakes Auto Group is planning a $30M from-scratch Honda dealership in Goochland County, just west of Short Pump. Over in Hanover, Atlanta-based EH Automotive Group is looking to build a Kia dealership on Mechanicsville Turnpike.
McGeorge Toyota’s main store at 9319 W. Broad St. now operates as Ourisman Toyota. (BizSense file photos)
There’s a clearer view of how much the McGeorge family fetched from the recent sale of its Richmond-area auto dealerships.
Its four locations – two McGeorge Toyota stores and two Mercedes-Benz of Richmond stores – sold for a combined $47 million, according to local real estate records.
That price tag was just for the dealerships’ real estate and does not include the consideration paid for the businesses themselves. That side of the sale is likely considerably higher than the real estate prices, though the parties did not disclose any financial details of the deals.
The real estate for the Toyota dealerships at 9319 W. Broad St. and 7705 W. Broad St., both in Henrico County, sold for $18.3 million and $6.2 million, respectively. The buyer was Graham Ourisman Automotive out of Northern Virginia and the deal closed in late September.
The two Mercedes dealership properties, at 12200 Midlothian Turnpike in Chesterfield and 8225 W. Broad St. in Henrico, sold earlier this month for $11.5 million and $11.3 million, respectively. The buyer for that pair was Miami-based Murgado Automotive Group.
Mercedes-Benz of Richmond was one of McGeorge’s two Mercedes stores sold in the deal.
The Toyota dealership at 7705 W. Broad St. sits on 4 acres and was most recently assessed at $5.1 million. The location at 9319 W. Broad sits on nearly 10 acres and was assessed at $16 million.
As for the Mercedes properties, 12200 Midlothian Turnpike sits on 4 acres and was assessed at $9.1 million and 8225 W. Broad St. sits on 3 acres and was assessed at $8.9 million.
The deals mark an end to the McGeorge family’s six-decade run in the auto business. David R. McGeorge started the company in 1955 when he purchased a Mercedes-Benz dealership in Richmond. The company had most recently been run by his grandson, Rod McGeorge, who was the seller in these recent deals.
For Graham Ourisman and Murgado, the acquisitions mark their debut in the Richmond market.
Murgado now owns 26 dealerships, with its other in Florida, Illinois and New Jersey, where it sells brands including Acura, Alfa Romeo, Audi, Bentley, BMW, Buick, Cadillac, Ferrari, GMC, Honda, Infiniti, Maserati, Mazda, Porsche and Volkswagen.
Graham Ourisman is part of publicly traded Graham Holdings Co. and owns six other auto dealerships, all in the Washington, D.C., area, including Lexus, Honda, Jeep, Ford and Toyota stores.
Murgado and Graham Ourisman aren’t the only out-of-town dealers expanding into Richmond.
Ohio-based Great Lakes Auto Group is planning a $30M from-scratch Honda dealership in Goochland County, just west of Short Pump. Over in Hanover, Atlanta-based EH Automotive Group is looking to build a Kia dealership on Mechanicsville Turnpike.
It’s inevitable that the dealerships will be pushed westward, across 288. New uses will be found for current locations. At one time in mid 70’s there were 17 car dealerships which made up Tysons Corner, a strategic location where Routes 7 and 123 crossed the beltway just north of I-66. That was before the Dulles Highway expanded as a toll road for commuters and high-rise offices were built in McLean and Vienna. Those dealerships have all been replaced by millions of square feet of retail and fifty story office/residential towers and hotels. Commercial uses of land have a 30-40 year… Read more »
Bruce, I think you need to go back and look again. A lot of them are still there. I’m sure they will eventually get replaced, but some have already been looking at constructing “urban dealerships” on the sites which are essentially parking garages instead of large surface lots. Then the rest of the site can be used for redevelopment. The one in Richmond that has seemed to buck the westward trend is Richmond Ford. I believe they are a significant player in the fleet vehicle market so they have not been as dependent on the individual buyers and have been… Read more »
Did that include destination charges?
Probably got them with the extended warranty too.
Wow! Good for them. As everyone who reads BizSense likely knows, running a business is really hard. The odds of a business surviving three generations and sixty years is probably in the single digits. The McGeorge family did it and did it well. Congratulations!
“That price tag was just for the dealerships’ real estate and does not include the consideration paid for the businesses themselves” $47 M seemed low, does anyone want to guess what the actual cost was?
Also, why exactly do we have car dealerships?
People who own dealerships coast to coast certainly are not local.