BMW motorcycle dealership goes big with new store

The building on the property at 19265 Victor Parkway had been empty since its former occupant, a bar called Doc’s Sports Retreat, closed in 2018. Before Doc’s, a variety of restaurants had occupied the site since the 1990s. A dual-branded hotel development previously proposed on the land fell through in 2022.

“The city really liked that concept, or that development proposal, and that project was fully approved and, if not for COVID, probably would have gotten underway,” said Livonia Planning Department Head Mark Taormina of the proposed hotel development.

In 2022, Knoll approached Taormina about building a dealership on the land. It was already zoned for commercial and retail uses — a use that included selling motorcycles, Taormina said — so it was just a matter of getting a site plan approved.

“The city’s very excited to see that property be developed,” Taormina said. “We think it’s a great location for his business, and we also look forward to working with him.”

Initially, Knoll planned a new 30,000-square-foot building on the property to house the BMW dealership alongside Ducati Detroit, a high-end motorcycle dealership previously owned by Knoll. However, financial barriers and an offer from potential buyers led him to sell the Ducati dealership in 2024.

Following a state of Michigan investigation into the Ducati dealership for fraud and other violations, Knoll agreed to relinquish the dealership license and admitted to bookkeeping violations in 2024. However, the agreement did not find the dealership guilty of fraud, he said. Knoll said the state’s investigation was not a factor in the Ducati dealership sale.

“The sale had already been formalized prior to that, and then, unfortunately, the state comes in and they do their due diligence, and they found some issues with our record keeping and our processes,” Knoll said. “But that really had no bearing on the sale whatsoever.”

Instead of a new building, Knoll decided to “basically re-skin” the existing one and add around 4,000 square feet to bring it close to 20,000 square feet total. 

A former restaurant may not seem like an intuitive location for a motorcycle dealership, but Knoll described it as a “perfect template.” An existing glass atrium will be converted into a showroom for the motorbikes. Some existing load-bearing walls are being replaced with columns, and gas piping servicing the kitchen is being removed. Overall, the renovations have been smooth and without major surprises, he said.

The new location has more parking spaces than the dealership needs. Knoll is looking for a business to set up shop on 2 acres of the property’s parking lot. He’s open to either selling the land or leasing it out. 

All of these changes aren’t just making the dealership the largest of its kind by square footage; they’re also set to increase sales. Currently, Knoll’s dealership ranks in the top 15 or 16 BMW dealerships in the U.S. by sales volume, Knoll said, selling 349 units in 2023 and 327 in 2024. Knoll hopes to break into the top 10 once the new location is up and running.

An increase in revenue would go along with that. The dealership tends to average $6.5 million to $7.5 million per year, Knoll said. He expects that to go up by 15% in the first year the new location is open, followed by 10% in the second and 5% in the third before leveling out at a 2% to 3% increase annually, for which he says the dealership typically strives.

Knoll lives in Birmingham but grew up in Livonia. 

“I’ve known the location my entire life,” he said. 

He also hopes the dealership will help revitalize business in Livonia.

“A lot of people have counted Livonia out” because it hasn’t evolved as quickly as nearby cities, he said. “Livonia needs its shot.”

Livonia is working on a transformational development that officials believe will take the suburban and segmented community and strengthen it with a city center, as Crain’s has reported.