Graham reported an increase in revenue and dealer revenue, revealing automotive operating profit was $4.5 million for the third quarter and $8.8 million for the first nine months of 2021. Third-quarter automotive revenue rose 10% to $84.7 million, while revenue for the first nine months of 2021 jumped 33% to $242.7 million.
Revenue rose due to sales growth at all three dealerships at the time and higher vehicle prices amid strong consumer demand and inventory shortages, Graham said.
In addition to the December acquisition, Graham Ourisman Automotive has invested in 2021 in its CarCare to Go platform, a vehicle maintenance and repair pickup and delivery service.
Last year, Graham Ourisman Automotive also acquired the real estate of its Honda dealership at Tysons Corner from Capital Automotive. the Washington Business Journal said the $27 million deal closed in September.
Maas said the lease term was coming to an end and the partnership had the option to purchase the land. Buying or renting real estate in a concession will be considered on a case-by-case basis, he said.
“For this particular dealer, the right thing to do was to own this property,” he said.
The Battlefield Ford purchase required taking on multiple leases and signing two new leases covering about half a dozen parcels over 11 acres, making it a more complex transaction, said the division’s James Mitchell. Dealership Capital Services of Cushman & Wakefield. He and the company’s Erin Rice represented the store clerk, who he described as being of retirement age.
Mitchell said they needed a buyer who “wasn’t afraid of a very complicated real estate structure with multiple leases.”
Cushman & Wakefield, which represented Sonic in its 2019 partnership sale, reached out to Ourisman about Battlefield Ford in late summer or early fall. The deal closed in late October and seller Fay wanted it done by the end of the year for tax purposes, a feat that was accomplished, Mitchell said.
Mitchell said his company is bringing dealership platforms to market that generate $600 million or more in annual revenue and will share those opportunities with Graham Ourisman Automotive.
“Their plans are to have a significant presence, certainly mid-Atlantic, and then long-term on the East Coast,” Mitchell said.
Graham considers his tie-up with Ourisman a success, Maas said.
The parties came together “with a long-term focus and the belief that together we can build a strong automotive business,” he said, “and we still have that outlook today.”