The City of Portland and Lithia Real Estate, a subsidiary of Lithia Motors, finalized their contract for the sale of the Terminal 1 property, which is trading for $12.5M. The due diligence period has started, and the buyer has 150 days to close on the 14.5-acre site, the Portland Business Journal reports.

Lithia Motors is a nationwide automotive dealership network HQ'd in Medford, and one of the largest automotive retailers in the country. In December, the city picked Lithia among seven bidders for the property, which is on the Willamette. According to the auto giant, it will develop a 250K SF facility there for its own use, plus another two flex buildings totaling 390K SF.

The auto dealer might consolidate some of its Portland operations at Terminal 1, from among the eight metro-area dealerships that it has, plus service work and detailing operations.