Kendall Auto Group, the Eugene-based collection of auto dealerships across the Northwest, is moving its Bend Volkswagen dealership to a new location.

Work is already underway at 1975 NE U.S. Highway 20, where Kendall is planning 11,682 square feet of new construction. The move from 1045 SE Third St. should take place by January, said Dave Blewett, president of Kendall Auto Group.

“We need room,” Blewett said Thursday. “Sales are up and we need more room.”

The city of Bend issued SunWest Builders of Redmond a building permit on June 16 for $2.3 million in construction at the new dealership site. Kendall Bend LLC has owned the 2.34-acre property since 2006, according to Deschutes County records. The site was formerly a Smolich Volvo auto dealership.

Kendall’s plan calls for adding 10,303 square feet to an existing 4,677-square-foot building. Parts storage and a service center will occupy most of the building, according to plans filed with the Bend Community Development Department. The city approved the site for an auto dealership in 2003.

The dealership will create 333 new daily trips by automobiles, including 20 during the morning peak hours and 27 in the afternoon peak hours, according to a traffic impact study filed by Kendall with the city. “As studied, the new trips will not cause any significant safety or capacity problems…” according to Kendall’s plan.

Kendall’s existing Bend Volkswagen dealership shares space with Kendall’s Porsche, Audi and BMW dealerships on SE Third Street. Those dealerships will remain in that location, Blewett said. Kendall purchased the four dealerships for an undisclosed amount from Carrera Motors in February 2014, the first of several dealership acquisitions in Bend by the company last year.

In July 2014, Kendall bought two more: Mercedes-Benz and Toyota/Scion dealerships, also located on SE Third Street and formerly owned by Todd Sprague. Kendall owns auto dealerships in Alaska and Idaho in addition to its properties in Oregon.

— Reporter: 541-617-7815, jditzler@bendbulletin.com