Mark O'Steen, a partner and vice president with the family-owned automotive group, said Thursday there were two motivating factors in the decision.
One, the Florida Department of Transportation needs part of the existing dealership property, including 40 parking spaces, for its Overland Bridge project along Interstate 95.
The project begins early this year to replace the series of overpasses that carry traffic on I-95 over Hendricks, Kings and Montana avenues and Atlantic Boulevard. The overpasses are referred to as the Overland Bridge.
The project also will add lanes to I-95.
O'Steen said the project also will affect business access to the site.
Two, the O'Steens want to be part of the dealership migration to the southern Philips Highway area near the Interstate 295 East Beltway.
"We feel like we are the last-standing dealership here and we would like to be with the other competitors," O'Steen said.
He said it hasn't been decided what to do with the 2525 Philips Highway property. The O'Steen family bought the 3.56-acre dealership in 1996 from the Parrish family, which operated Parrish Volvo there.
Other dealerships have been developing sites near the I-295 connection at south Philips Highway.
Property records show O'Steen Automotive paid $1.8 million for the former Saturn dealership site, comprising two buildings developed in 1995 on a 2.9-acre site.
The sale was recorded Friday. O'Steen bought the property from Spirit Master Funding IV LLC.
Records also show O'Steen took out a $2.76 million mortgage Dec. 27 from Bank of America.
The former Saturn dealership is not far from O'Steen's other dealership, O'Steen Volkswagen at 11401 Philips Highway, which was developed in 2006.
O'Steen said the new Volvo site will be renovated with the new Volvo face and the group will add service bays, a car wash, a customer lounge and an upgrade to the entire facility. He said the shop and service department will be air-conditioned.
"It's going to be a very nice state-of-the-art facility," he said. He said the dealership employs 34 people and is considering adding jobs.
"It's a good move for customers, with easy access, and it's centrally located. It's a growing area," he said.
O'Steen said the south Philips Highway area is popular for automotive dealership development.
"The growth of the automotive industry is helping that, definitely," he said. "And when we start selling more cars, we need more space."
Asked if O'Steen Automotive was considering other development, O'Steen didn't confirm any plans.
"We are always looking if something comes available, but we are very pleased with the Volkswagen and Volvo franchise right now," he said.
O'Steen Automotive Group Inc. intends to relocate its Volvo dealership business at 2525 Philips Highway more than 11 miles south to 10863 Philips Highway by early 2014.