CarMax prepares to enter SF market

Used- and new-car retailer buys twin parcels on south Cerrillos Road

CarMax, the national usedand new-car retail chain, has set its sights on the Santa Fe market for a future dealership.

A company representative said the auto giant has bought two parcels of land comprising eight acres on the east side of Cerrillos Road near Las Soleras Drive. Richmond, Va.-based CarMax confirmed the purchase of land on a bustling commercial strip that is next to a Lexus dealership and across from a Walmart supercenter.

The purchase prices and names of the sellers of the parcels the company acquired at 6800 and 6820 Cerrillos Rd. were not disclosed, but a commercial real-estate site recently had the properties listed for sale at $2 million and $1.7 million, respectively.

A CarMax spokeswoman was vague on an opening date.

“It can take two to three years to get all necessary approvals, complete construction and open for business” once the company decides to move forward on any location, said Lindsey Duke, a CarMax spokeswoman. However, “We have identified Santa Fe as a good fit for our current growth plan,” she added.

“We would anticipate a store at this particular location to be a small-format store,” said Duke.

With a scaled-back size, these stores typically stock approximately 150 vehicles, are approximately 7,000-square-feet in size and hire between 10 and 15 associates, she added.

CarMax typically invests between $10 and $25 million on each store location depending upon the size of the store and its capabilities, said Duke.

Last June, CarMax said it had identified 80 markets that will support stores that are downsized from its typical CarMax outlets. A traditional CarMax superstore stocks 250 to 300 vehicles.

CarMax, a publicly traded company known for its no-haggle auto sales, operates more than 160 stores in 39 states nationwide, including a superstore in Albuquerque at 5500 Alameda NE.