UPDATED OCT. 21 at 4:45 p.m.:
Fletcher Jones Management Group plans to occupy a 136,000-square-foot warehouse and office building in Irvine.
The Las Vegas-based owner of the largest collection of Mercedes-Benz dealerships in the U.S. will expand into the new Irvine Commerce Center building at 18582 Teller Avenue, the Orange County Business Journal reported.
The building along Jamboree Road near Newport Beach was developed on speculation early this year by Ares Industrial Management, based in Illinois.
The Irvine Planning Commission approved the automotive use for the building, according to the Business Journal, but a representative of Ares told The Real Deal that a lease has not been finalized yet.
Fletcher plans to use the building “as a pre-delivery inspection facility for vehicle sales.” The preparation will involve car detailing and photography, as well as inspection. As many as 125 vehicles would be processed each day at the warehouse.
The owner of 16 M-B, Audi, Porsche and Toyota dealerships in three states will upgrade the building for 19,600 square feet of offices, 47,500 square feet for vehicle repairs and 69,600 square feet for warehousing, distribution and storage.
Fletcher Jones operates its flagship Mercedes-Benz dealership a few blocks away at Jamboree Road and MacArthur Boulevard in Newport Beach.
In March last year, Fletcher Jones paid $48.6 million to buy Carson Toyota, the largest car dealership on Auto Row in Carson. In Southern California, Fletcher Jones also owns Mercedes-Benz of Ontario, Audi Beverly Hills and Porsche Long Beach.
Ares Industrial Management, an alternative investment manager founded in 1997, has $447 billion in assets under management, including $68 billion tied to real estate, according to its website, with 35 offices around the world.
Correction: Previous story implied a final lease signed by the parties.
— Dana Bartholomew
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