Fletcher Jones Management Group, the largest collection of Mercedes Benz dealerships in the U.S., is expanding its Newport Beach operations by adding a warehouse and office in Irvine.
The Irvine Planning Commission approved Oct. 17 a 136,612-square-foot warehouse for automotive repairs and pre-delivery vehicle inspections. Irvine city staff said Fletcher Jones Management Group would lease the entire space and use it “as a pre-delivery inspection facility for vehicle sales.”
A portion of the building, called Irvine Commerce Center, would also be used for administrative offices and warehouse space for auto detailing, photography and other elements of the vehicle pre-sale inspection process.
The building, sitting on 6.25 acres at 18582 Teller Ave. near the border of Irvine and Newport Beach, was developed on a speculative basis and was completed earlier this year.
As many as 125 vehicles would be processed each day at the warehouse.
No customers would be allowed at the warehouse, nor would automotive sales take place at the property.
The anticipated floor plan includes 19,555 square feet of administrative office space, 47,500 square feet for vehicle repairs and 69,557 square feet dedicated to warehousing, distribution and storage.
The “proposed pre-delivery inspection facility would serve as a space to process and prepare new and previously owned vehicles for their eventual sale at off-site automotive dealership locations,” Irvine city staff said in a report to commissioners.
“Pre-delivery inspection and processing entails minor automotive services and repairs, detailing and photography,” Irvine city staff continued.
“The automotive repairs proposed as part of the pre-delivery process are generally less intensive and less expensive than a full-service repair shop, and there are no paint or body work services proposed to occur within this facility.”
Fletcher Jones Management Group anticipates hiring 120 people to work at the warehouse, working in two shifts. The warehouse’s operating hours would be Monday through Friday, 7 a.m. to 7 p.m.
The automative company anticipates making minor tenant improvements at the warehouse.
The Planning Commission’s decision is considered final as the Irvine City Council will not consider the permit unless an appeal is filed in opposition.
Built on Speculation
During a site visit, the Business Journal spotted about two-dozen Mercedes-Benz vehicles and a few Sprinter vans, all parked in a lot behind a closed but transparent gate.
Looking through a window into the office portion of the warehouse, a few lights were on, but it was not immediately apparent that the building was occupied.
Irvine city staff confirmed with the Business Journal that the Planning Commission only voted on Fletcher Jones’ permit request to allow vehicle repairs. CBRE, the building’s leasing agent, declined to comment whether Fletcher Jones Management Group is already leasing the space.
The warehouse at 18582 Teller has a “For Lease” sign staked in front of the building along Jamboree Road. CoStar data shows the building as vacant and without any tenants.
The building, developed by Ares Industrial Management and constructed by Premier Design + Build Group, was built on speculation and was completed earlier this year.
The Boardwalk, an office building adjacent to Irvine Commerce Center, is home to major companies such as Rutan & Tucker, Shopoff Realty Investments and Greenberg Traurig.
The Fletcher Jones Brand
Fletcher Jones Automotive Group is the country’s top family-owned auto group and the nation’s number one center for Audi and Mercedes-Benz according to annual sales reporting by Mercedes-Benz USA.
The group operates a Mercedes-Benz dealership a few blocks away, at the intersection of Jamboree Road and MacArthur Boulevard in Newport Beach.
The Fletcher Jones Motorcars flagship dealership at Jamboree and MacArthur ranked as Orange County’s No. 1 auto dealer, with nearly $840 million in sales volume for the 12-month period ending June 30. That sales volume, however, was down 3% on a year-over-year basis.
The dealership sold 4,966 new cars and 4,756 used cars for the 12 months ending on June 30, both ranked as No. 1 in Orange County. Toyota of Orange finished second for the same period with new car sales, 4,613. Toyota of Huntington Beach ranked No. 2 in used car sales (2,702), July 1, 2023, to June 30.
Other Southern California dealerships under the Fletcher Jones umbrella include Mercedez-Benz of Ontario, Audi Beverly Hills, Porsche Long Beach and a Toyota center in Carson.
Fletcher Jones also operates Audi, Mercedes-Benz and Porsche dealerships in Chicago, Las Vegas and Northern California.
