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VW Parks in $125M West Side Spot

NEW YORK CITY-The German car maker opted to buy rather than lease a 265,000-square-foot space for a VW and Audi dealership on Eleventh Avenue.

By Paul Bubny | Updated on November 12, 2009

NEW YORK CITY-In one of the year’s biggest retail transactions locally, Volkswagen Group of America is acquiring the Potamkin General Motors building and auto dealership at 798-804 Eleventh Ave. for $125 million. The 265,000-square-foot space will be the flagship New York City dealerships for Audi and Volkswagen, according to CB Richard Ellis, which represented the automaker in the deal.

VW laid out $84 million to buy the property and will invest another $41 million in renovations. The acquisition puts the two brands along the so-called “auto sales Autobahn” of Eleventh Avenue, already home to high-profile Mercedes-Benz, Lexus, BMW and Toyota dealerships.

“Volkswagen Group engaged CBRE in the search for a flagship Manhattan site back in February 2007, and identifying opportunities on Eleventh Avenue, which eventually stood out as a preferred location, was extremely challenging,” says CBRE EVP Jedd Nero in a release. “However, Volkswagen was committed to its strategic plan to grow in the US market and the Potamkin site ended up fitting perfectly into their business and marketing plan in New York.”

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