Emerson Russell, center, Joe Prebul, right, and Steve Olsen talk about CarExpress, a planned new car dealership near Shallowford Road.Joe Prebul says that people often ask him when he's going back into the car business.
The time has come, he said, as he joins with Chattanooga entrepreneur Emerson E. Russell and an Atlanta businessman and they open a used-vehicle dealership at Highway 153 and Shallowford Road in September.
"I'm going back to my roots," Prebul said about the dealership they'll call CarExpress.
Prebul had built a car empire in Chattanooga, but that fell apart and he went to prison early this decade after pleading guilty to one misdemeanor count of bank larceny. Prebul went to work at Lexus of Chattanooga upon his release, and he still plans to handle that dealership's commercial business.
But Russell said Prebul will oversee the day-to-day operations at the new CarExpress dealership in which the trio are investing up to $6 million. The dealership will offer a CarMax-type one-price, no-haggle model.
They expect to turn the new venture into one of the top five dealerships in the city, selling between 100 to 150 cars and trucks a month with a goal of 200, Prebul said.
Annual revenue is targeted at $45 million to $50 million a year, and the dealership will employ about 65 people, they said.
The 42,000-square-foot location formerly held the John Hicks auto dealerships decades ago, though Miller-Motte College offered classes there in recent years before shifting to Lee Highway.
Russell said he plans to move his Chattanooga-based company ERMC to another part of the Highway 153 building they've purchased. All of ERMC's 100 or so employees in Chattanooga will shift from their current location at One Park Place on Lee Highway, he said.
That building, which Russell bought from Chattanooga shopping center operator CBL & Associates Properties Inc. years ago, is for sale or lease, the company CEO said.
Russell oversees a business employing more than 5,000 people who work to provide security, maintenance, janitorial and landscaping services to facilities in 35 states.
Russell and Prebul said they've known each other for many years. Russell, who also owns the East Ridge Motors used-vehicle dealership on Ringgold Road, said he and Prebul have been talking about a year and a half about getting into business.
Steve Olsen, the Atlanta partner, has known Prebul for about 25 years, he said. His company, HBF, operates restaurants in major airports, including Hartsfield-Jackson International Airport in Atlanta. Olsen said he had looked at entering the car business early in his career, but ended up in restaurants.
Russell, named this summer as Chattanooga area manager of the year, said all of the vehicles the dealership sells will be 4 years old and newer.
"It will be a no-pressure operation," he said. "The price is the price is the price."
Prebul said the dealership also will service vehicles, holding 30 bays, and will have about 7,100 square feet to sell parts and accessories.
He said Capital Toyota and Lexus of Chattanooga owner Bob McKamey asked him to stay on overseeing part of his Lexus operation. Prebul lauded McKamey, who had actually hired on Prebul before he went to prison.
McKamey, who marked 50 years as a Toyota dealer earlier this year, said then that he had 27 people who've served prison time work for him over the years, with all but one becoming successful employees.
Police arrested Prebul in February 2009 and charged him with 11 counts of federal wire fraud. His brother-in-law, Danny Bensusan, alleged that Prebul had bilked him out of more than $7 million. In November 2009, Prebul ultimately pleaded guilty to the misdemeanor larceny count, admitting to withdrawing $750 Bensusan had given him to run his dealerships, and he was sentenced to a year in prison.
Also in February 2009, Prebul filed voluntary Chapter 7 bankruptcy, which is a basic liquidation of assets.
Contact Mike Pare at mpare@timesfreepress.com or 757-6318.