Medford, Ore.-based Lithia Motors Inc., which owns Spokanes Camp Automotive Inc., says its in the process of buying land in Liberty Lake possibly to build a new facility for its Mercedes-Benz dealership here.


The automobile-dealership chain is buying a roughly 7-acre piece of land located just north and east of the Porsche of Spokane dealership, which is northwest of the Interstate 90-Harvard Road interchange, says Guy Byrd, broker and co-owner of Spokane-based Cornerstone Property Advisors LLC, which is handling the transaction. George Gee, who owns Porsche of Spokane, is selling about 2 acres of that land, and Lelland Marks LLC, of Spokane, is selling the other 5 acres, Byrd says.


Bill Greenstein, director of real estate at Lithia, says the transaction is in the due-diligence phase, or evaluative process that occurs before capital is committed to a project or investment, and he expects it to close by October.


Its not set in stone, Greenstein says. There are still some steps we have to take.


If the sale closes, Lithia will make a final decision on whether to build a new facility there for its Mercedes dealership, Greenstein says. It doesnt have an estimated cost for the project and hasnt set a start date for construction, but the project likely would take about a year to complete, he says.


The site includes enough land for both the envisioned Mercedes dealership and another facility, he says. Lithia is considering potential uses for that leftover portion of the property.


The company decided to buy land in Liberty Lake because of the rising development activity there, Greenstein says.


Its an area of growth that would serve Lithia and Mercedes needs, he says.


Lithia currently operates its Mercedes dealership in a leased facility in downtown Spokane, at 1027 W. Third. If Lithia builds a new structure in Liberty Lake for the dealership, the company might keep its presence downtown by operating a satellite Mercedes dealership there, Greenstein says.


Last August, Lithia said it planned to move its Mercedes dealership to a site on east North Foothills Drive in North Spokane, a couple of blocks northeast of Lithias Camp Chevrolet Cadillac and Camp Imports stores. It planned to demolish a former State Farm Insurance Co. building on that site, and develop a new facility there.


Greenstein says the company now is looking at other uses for that site.


We like the site, he says. Weve just shifted gears.


Lithia bought the Mercedes dealership from Spokane-based Sutherland Motors Ltd. in 2003. The Oregon company has 94 dealerships and 191 auto-dealership franchises in 12 states in the western U.S., its Web site says. It had total revenues of more than $2.9 billion last year.


Contact Emily Brandler at (509) 344-1265 or via e-mail at [email protected].