Car sales company Motorpoint is set to create 50 jobs and invest up to £10m after taking the former Carcraft site in Sheffield.
The firm is aiming to have 500 new and nearly new cars on the 10-acre plot when it opens in April.
It comes after the company spent more than £1m sponsoring Sheffield Arena for five years, from 2010 to 2015, without having a base in the city.
PR manager Stephen Wright said the plan was to open a site to coincide with the sponsorship, but nothing suitable came up.
Motorpoint will finally open its doors after a seven-year search and some 18 months after the Arena deal finished.
But Mr Wright said awareness of the firm was still very high, which he hoped would boost sales.
He added: “A lot of people are very interested. People still call it the Motorpoint Arena, and many have had some of the best times of their lives there.
“We’re really happy to be in Sheffield, you can’t help but be impressed by the city.
“We are recruiting and we’d be happy to take the former Carcraft people back, they have useful skills.”
Carcraft went into administration in April 2015 with the loss of 550 jobs, 30 in Sheffield.
The premises on Europa Link, Tinsley, attracted several bids after it went on the market. Motorpoint won and has taken a 20-year lease.
The site is just down the road from The Car People, also on Europa Link.
Mr Wright added: “For the cosnumer it’s healthy competition, they want great choice and great value.”
Established in 1998, Motorpoint is based in Derby, employs 700 at 12 branches and has 6,000 cars in stock. Turnover is £700m.
It claims to be the country’s biggest independent car retailer by volume, selling motors for average of £10,000.
Motorpoint owns its cars, unlike Carcraft which leased them from owners, such as Bristol Street Motors, and took a commission on sales.
The Sheffield office of Knight Frank, alongside automotive specialists Barber Wadlow, acted for Kames Capital in securing the lease.