San Francisco’s first Porsche dealership has opened in South of Market after an investment of more than $10 million, in another major economic bet on the area.
The showroom at 500 8th St. opened in June and on Thursday, owner Indigo Auto Group hosted an extravagant party with 350 invited guests and a concert featuring former members of the Eagles and Journey.
The 91,000-square-foot showroom and dealership has space for 150 cars and employs around 50 workers.
“There’s a big Porsche community out here. And I think this area has been underrepresented by not having a dealership here,” said Karla Curtsinger, the facility’s general manager. “It’s been a very warm welcome from the community.”
On Thursday, Porsche executives and customers sampled fresh oysters, garlic noodles and macarons with pictures of a Porsche Cayenne, alongside generous pours of cocktails, Buena Vista Irish Coffee and wine from Chateau Montelena in Calistoga.
A new Porsche dealership opened at 500 8th St. in San Francisco’s South of Market neighborhood.
Roland Li / The Chronicle
Don Felder, a former member of the Eagles, and former Journey member Steve Augeri, jammed alongside Nashville band Sixwire.
Curtsinger isn’t fazed by the nearby closures of Target, Cole Hardware and Samy’s Camera during the pandemic. (Samy’s has been replaced by Ace Plumbing & Rooter.) Porsche is catering to enthusiasts who aren’t just looking for commodity products, she said.
“A Porsche dealership is a destination,” she said. “You can do a lot of the transaction online, but the excitement of getting a new car, especially a new Porsche, is being able to see it, sit in and touch it, drive it.”
Across the street from Porsche is Airbnb’s headquarters, a testament to both the tech wealth in the area and a new normal where the company now allows workers to go fully remote.
Curtsinger sees the biggest challenge as raising awareness that the store has opened, and future events are planned, in line with the strategy of making retail more “experiential,” in the parlance of real estate brokers.
The modern space has offices, a merchandise store and space for a stage, using what she said was fifth generation Porsche design guidelines.
“We also wanted to keep it on theme with San Francisco. The city is very eclectic and very artistic, so that’s why we kept some of that … like the exposed concrete walls.”
A new Porsche dealership opened in San Francisco’s South of Market neighborhood has space for 150 cars.
Roland Li / The Chronicle
Indigo Auto Group, the biggest U.S. Porsche franchisee, also owns Porsche, Audi and Volkswagen dealerships in Marin County and a Ferrari dealership in Silicon Valley.
Last week, Porsche reported third quarter revenue up 10% to 9.7 billion euros ($10.4 billion) compared to the prior year. Operating profit was up 5% to $1.65 billion euros ($1.77 billion) from the prior year, though profit margins were down 0.8 percentage points due to supply chain issues, inflation and higher sales expenses.
U.S. auto sales rose by 17% in the third quarter to 3.9 million new cars and trucks sold, according to data firm J.D. Power. But widespread United Auto Workers strikes, which have partially been resolved, could dampen supply.
“The automotive industry in general is adjusting to the market normalizing. And so you could call it a struggle, but that’s only if you’re not prepared for it,” Curtsinger said. “If you know that’s coming, you tend to prepare for it.”
Reach Roland Li: roland.li@sfchronicle.com; Twitter: @rolandlisf
