Open Road Capital adds five dealerships in two deals

Auto retail investment firm Open Road Capital and partner Jesse Hord bought four New York dealerships from Keeler Motor Car Co., owned by Hord's father-in-law, Sandy Keeler. The deal closed Aug. 13.

The stores are Keeler Honda, Mercedes-Benz Center at Keeler Motor Car Co., Keeler BMW and Keeler Mini, all in Latham, N.Y., north of Albany. The deal included Keeler used-vehicle and collision centers on the same campus.

The sale supports a transition to the next generation, Open Road co-founder Tim Batchelor said. Hord is dealer principal and "will continue to build the group under his leadership," Batchelor said.

Open Road also partnered with the Keeler family and Hord in 2021 to acquire BMW of Ridgefield in Danbury, Conn., and Genesis of Ridgefield in Norwalk, Conn., in March.

The most recent deal gives Open Road its first Mercedes-Benz and Mini franchises and increases the group's dealership count to 32 new-vehicle locations in California, Connecticut, Iowa, Mississippi and New York.

The Keeler stores will be renamed: Mercedes-Benz of Latham, BMW of Latham and Mini of Latham. Keeler Honda will retain its name. Open Road is building a 57,000-square-foot dealership for Honda on the same campus and will move Keeler preowned into the current Honda space, slated for November.

"This acquisition reinforces our commitment to expanding our market presence on the East Coast and support the growth of our partners," said Eric Chelline, co-founder and managing director for Open Road Capital.

Additional deal adds first ultraluxury dealership
In a separate deal, Open Road Capital entered a new partnership with dealer Edgar Castellanos and on July 31 bought Eurocar-Lotus of Orange County in Costa Mesa, Calif. The dealership, which marks Open Road's first ultraluxury store, includes Eurocar that sells exotic used vehicles and Lotus new vehicles. The seller was Farzad Nafeiy, who goes by Z Nafe.

Castellanos owns Palmdale Honda and three used-car stores, all in California. Open Road is now a partner with Castellanos in all those locations, but the firm declined to provide specific percentage ownership information.

Stephen Jones of Dave Cantin Group advised the seller in that transaction.

Bain Capital Credit has helped fund Open Road Capital's investments since 2020. Open Road has partnerships with seven dealers, six of which have deals involving funding from Bain Capital.

Open Road Vice President David Wilkinson said it has more growth on the horizon.

"We are planning to close an acquisition of two dealerships shortly, with several more under contract and expected to be final in the next couple months," he said.