Lexus dealership to expand in Lynnwood

LYNNWOOD — Lexus of Seattle plans to build a new $10.5 million dealership with a greatly expanded service department and showroom just a few blocks north of its existing business on Highway 99.

Brad Castonguay, Lexus of Seattle’s president, said the dealership at 20515 Highway 99 in Lynnwood was one of the first 100 Lexus outlets in the country when it opened in 1989.

At that time, selling 35 to 40 new cars a month was the expectation for the new brand.

The dealership is now averaging close to 80 new car sales a month, and Lexus estimates sales could double again by 2007, Castonguay said. Compared to newer Lexus dealerships, the Lynnwood business is now considered average to small, he added.

"With all the growth of Lexus, we’ve already outgrown our facilities," Castonguay said.

Lexus of Seattle will build the new dealership on a 5-acre site on the west side of Highway 99 between 202nd Street SW and 204th Street SW. Construction is expected to begin in the spring, and the new dealership is projected to be open a year from now.

The 22,000-square-foot showroom and service building at the existing business will be replaced by a 35,000-square-foot structure that will include more than 30 service bays, compared with 14 now.

"Everything’s going to get a heck of a lot bigger," Castonguay said.

That includes the workforce of about 55 employees. At the new dealership, the staff is expected to eventually exceed 100 people.

Lynnwood Mayor Mike McKinnon said the new dealership will be a welcome addition to the city’s efforts to revitalize Highway 99.

Lexus of Seattle is part of the Oregon-based Kuni Automotive Group, which owns 10 dealerships stretching from California to Colorado. The Puget Sound area has two other Lexus dealerships, in Bellevue and Tacoma.

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