SAN JOSE — One of the Bay Area’s largest auto dealerships expanded its footprint by purchasing real estate next to San Jose’s car lane.
Del Grande Dealership Group (DGDG) purchased a 2.3-acre lot behind several auto dealerships at San Jose’s Capitol Expressway Auto Mall, according to documents filed with Santa Clara County officials on Aug. 19. purchased the flat parking lot currently occupied by
Deeds filed with the County Records Office show that affiliates of DGDG’s auto retailer paid just under $6.1 million for the parking lot.
Parking is adjacent to Capitol Volkswagen and Capitol Buick GMC car dealerships and near Capitol Chevrolet and Capitol Ford dealerships. Del Grande Dealership Group operates all four of his auto retail operations.
An affiliate of Kleinman Holdings has sold this property to the DGDG Group.
With the latest transaction, Del Grande now owns multiple adjacent lots behind dealerships operating on the Capitol Expressway, according to county records.
In March, a Del Grande affiliate paid $15 million for 3.1 acres of land next to the property it just purchased, according to county documents. The 3.1 acre lot is located at the intersection of his T-junction where Hillsdale Avenue, Pearl Avenue and Foxworthy Avenue meet.
Miki Correa, senior director of commercial real estate firm Cushman & Wakefield, arranged both Del Grande Dealership Group purchases, which were completed this year.
“DGDG was very interested in purchasing these two properties,” says Correa.
Through previous purchases, Del Grande Group also owns nearby buildings and land on which auto dealers operate Capitol Volkswagen, Capitol Buick GMC and Capitol Chevrolet, according to county documents.
“They are now managing a huge lot in the auto mall area,” Correa said.
Del Grande rents the Capitol Ford building from a Kleinman Holdings affiliate. At one point, a Kleinman affiliate also considered selling the Capitol Ford property, but canceled the sale effort.
“The Capitol Ford site is no longer on the market,” Correa said.