Old Safeway building to house Downtown Lexus

A building on Third Avenue and Maple Street in Spokane that housed a Safeway store for 50 years is slated to become a new home for Downtown Lexus.

“We like our location. We want to stay downtown with all of our franchises,” said Dave Coombs, who owns Downtown Toyota/Lexus with his wife, Melody Coombs.

The couple recently purchased the property, which was listed for $2 million, for an undisclosed price from Guardian Life Insurance Co. of Walnut Creek, Calif.

Starting in the fall of 2008, the old Safeway building will undergo extensive renovations to create a Lexus showroom and service center, Dave Coombs said. The current Lexus building, at 1105 W. Third Ave., across the street from Downtown Toyota, will become a showroom for certified used Toyotas.

It could take a year or longer to complete the Lexus project, because the company is also doing a major remodel on the Downtown Toyota building this fall.

The Toyota dealership has been in the Spokane core for 30 years, said Coombs, who purchased the business in 1985. He bought Lexus in 1999 and in 2000 Coombs purchased Downtown Honda with his brother, Steve Coombs.

That project is part of a companywide image upgrade and will double Toyota’s showroom space, add upstairs offices and create a larger waiting area, he said.

Service centers for both dealerships will be larger and quick lube services will be added.

Coombs estimates that the Toyota upgrades, including building a new parking garage to house additional inventory, will cost $2.5 million to $3 million. He isn’t yet sure what the renovations on the 22,000-square-foot Safeway building will cost.

The primary reason for moving the Lexus dealership was to expand the service centers for both brands and allow for future growth, he explained.

Sales have steadily increased over the past few years, he said, and last year Lexus sales increased by 10 percent. The dealership serves a regional customer base, including people from Idaho and Montana.

Coombs attributes part of the growth in Lexus sales to the company adding new products, including the RX400 hybrid, a fuel efficient sports utility vehicle, and the IS300 luxury sedan.

Across the board, Toyota models are doing well and last year the company renovated the Downtown Honda dealership.

“We’re fortunate our models are doing well and (sales) continue to grow,” Coombs said.

Realtors assisting with the deal were Jim Quigley of Kiemle & Hagood Co., Guy Byrd of Cornerstone Property Advisors LLC and Ed Hogan of CB Richard Ellis of Tukwila, Wash.

Garco Construction will be the contractor for the Toyota project, which should take about a year to complete.