Lithia Motors said it will sell an 11.9-acre parcel off Crater Lake Highway to long-time company vice chairman Dick Heimann for $4.1 million.
In an a Securities and Exchange Commission filing released today, Lithia said the land is part of a planned auto mall where several dealerships, including Lithia-owned stores, will be relocated.
Heimann intends to relocate the Medford BMW, Nissan and Volkswagen stores, which are 80 percent owned by him and 20 percent owned by Lithia, to the new location.
"We used an independent appraisal to determine the sale price for the unimproved land," Lithia said in its filing. "The transaction will result in a gain to the company of $2.5 million."
The auto retailer's board determined the transaction would benefit the company by attracting more potential purchasers to a single location and was on terms no less favorable to Lithia than the terms the company could have obtained from an unaffiliated party, according to the filing.
— Greg Stiles