Volkswagen is set to purchase a 265,000 square foot showroom at 11th Avenue and 56th Street in Manhattan that will serve as a highly visible showcase for the company’s VW and Audi brands.
The German automaker says that the showroom will debut a new design concept for VW and will open early next year as a VW dealership before the Audi showroom is unveiled later in the year.
CB Richard Ellis, the agency that handled the sale, says that VW paid $84 million for the real estate but also intends to invest another $41 million into a thorough renovation.
Numerous other automakers also operate flagship showrooms in Manhattan; the new VW- Audi complex will be just blocks from similar facilities showcasing Mercedes-Benz and BMW .
The showroom is currently owned by Potamkin Auto Group, which sells Cadillac , Chevrolet , Buick , GMC , Hummer and Saab models. Potamkin is moving the GM (and soon to be non-GM) brands to its former Honda showroom also on 11th Avenue in Manhattan when it sells off that franchise.
The building has a storied history in the automotive world; it was owned by GM until 1979 when Potamkin bought it and opened up Manhattan Cadillac. Later, GM bought back the facility for a short period before selling it back to Potamkin.
