From The Salem News’ Ethan Forman- DANVERS — Danvers-based Kelly Automotive Group is ramping up expansion plans along Route 114 in both Danvers and Peabody.
Kelly is mulling the creation of a two-story dealership out of the vacant former Borders Books and Music store on Andover Street in Peabody. The Danvers native and the company’s president, Brian Kelly, acquired the property in December.
Kelly’s plans also include the construction of a new Volkswagen dealership at 72 Andover St. in Danvers, where he presently operates a Fiat dealership. This plan is coming before the Danvers Planning Board on Tuesday.
It is possible Kelly may move his Fiat dealership either to his Jeep-Chrysler dealership on Route 1 in Lynnfield, Kelly said. It is also possible the former bookstore at 151 Andover St. could become the new home to the tiny, stylish Italian import.
In December, Kelly, as trustee of 151 Andover Street Realty Trust, bought the 1.57-acre Borders site, with its nearly 24,400 square-foot-building, for $1, according to the deed.
The property was conveyed to Kelly by Select Sites of the North Shore LLC, and is subject to the mortgage, which has a more than $5 million unpaid balance, along with assignments of certain leases and rents. The property is assessed at nearly $3.4 million, according to city records.
“I bought the note the from the bank,” said Kelly, who added he managed to acquire the property in an online auction.
The Borders building was built in 1994, according to city records. It closed last year after the nation’s second-largest bookstore company filed for Chapter 11 bankruptcy protection.
Kelly is now doing exploratory work to see if the existing building can be turned into a car dealership. Kelly is trying to find out if the second floor can bear the weight of vehicles in what would become a glassed-in showroom. The building’s ground floor is set lower than the roadway, so the second floor commands a view of Route 114 and the Northshore Mall across the street.
“If I can do that, I will figure out if I will put a dealership there or not,” said Kelly, who has also fielded interest from retailers looking to set up shop there.
This is not Kelly’s first attempt at setting up a dealership in Tanner City along Route 114. In 2010, Kelly acquired the former North Shore Lincoln Mercury at 1 Cross St., which is adjacent to the Northshore Mall.
Kelly considers this a prime location for a dealership, but he has waited to open something there, in part because of the slow economy, and in part because of the site, which is on a slope and needs expensive work.
“I want to take my time and do something right,” Kelly said.
Kelly said he has not figured out where he might move his Danvers Fiat dealership, though he said it is doing well, and there are new models coming soon. The location at 72 Andover St. was always viewed as temporary.
Kelly plans to build a nearly 32,200-square-foot, single-story Volkswagen dealership, which will have a front wall made of glass and aluminum, according to plans by BKA Architects. The Fiat building will be demolished to make way for the new building. The 4.7-acre site has been the home of auto dealerships for many years. A back building on the site is partially located in Peabody.
The new dealership will have a showroom, a small mezzanine, a service department, a parts storage area and offices. It will meet all of the town’s zoning setback requirements, which are not being met by the present buildings, according to the application filed by Danvers attorney Nancy McCann.
The back building will get a face-lift and be used for vehicle storage. Danvers Senior Planner Kate Day said the Volkswagen project is one of the larger commercial projects to come before the town in recent years, next to the construction of a much larger indoor soccer facility farther west on 114.
The Volkswagen dealership will take a year to build, Kelly said. It operates now across the Lowe’s access road from his Infiniti dealership, also on 114.
When asked about what is driving the construction of the new dealership, Kelly said “factories are doing better, and they are pushing facility upgrades.”
Within the next three years, Kelly plans to upgrade his Infiniti dealership, as well.
Auto retailers have been increasing their presence in and around Route 114 in recent years, in addition to Kelly’s dealerships.
Ira Motor Group has Porsche, Lexus, Mazda, Audi, Scion, Subaru and Toyota dealerships at various locations along Andover Street in Danvers and Peabody. Ira bought the former Jimmy’s Allenhurst function facility in Danvers and had that building demolished as part of its expansion plans.
Herb Chambers is planning to enlarge its Chrysler Jeep Dodge Ram dealership and is mulling a stand-alone Cadillac dealership at its Chevrolet dealership across the street.
Acura of Peabody, which is part of the Lyon-Waugh Auto Group, has a new location along Route 114 in Peabody. Acura’s former home is now a Lyon-Waugh Mini Cooper dealership. Lyon-Waugh also operates a large BMW dealership in Peabody, next door to its Mini dealership.
Not far away but within sight of Route 114, Village Automotive Group operates Hyundai and Volvo dealerships on Commonwealth Avenue, across from the Liberty Tree Mall. Further down Sylvan Street in Danvers sits Danvers Motor Co.’s Ford dealership. Finally, a Michaud Mitsubishi dealership sits next door to where Kelly plans to build his new Volkswagen store.
Staff writer Ethan Forman can be reached at 978-338-2673 or by email at eforman@salemnews.com or on Twitter @DanverSalemNews.
