LOS GATOS — Two Los Gatos sites currently operated by luxury and luxury car dealers have been acquired by a busy real estate company that prefers to redevelop prime real estate.
Sandhill Property acted through affiliates and paid a total of $ 25.4 million to properties near the corners of Los Gatos Boulevard and Blossom Hill Road.
The two Los Gatos sites are currently occupied by Los Gatos Acura and Los Gatos luxury cars, the brands of which include Rolls-Royce, Aston Martin, Bentley and Lamborghini vehicles.
According to property records, Sandhill Property paid $ 13.2 million for the luxury car site on 620 Blossom Hill Road and $ 11.3 million for the Acura parcel of 16151 Los Gatos Boulevard.
The purchase was arranged through the brokers David Taxin and Jeremy Awdisho of the commercial real estate company Mechaam Oppenheimer.
Accura dealers are leased to a company managed by the Penske Automotive Group, founded by entrepreneur and auto racing executive Roger Penske. Penske is also a retired racing driver.
Luxury car dealers are leased to Price Sims Family Dealers, a family-owned car dealership.
Sandhill Property is headed by Peter Pau, a veteran real estate executive who has developed or is about to develop many well-known properties in the Bay Area. Poe’s project includes plans to transform the old Cupertino Barco Mall into a home, shop, restaurant, entertainment center and office village. He also proposed the redevelopment of El Paseo de Saratogamor in southwestern San Jose.
Sandhill Property also has a rental agreement with a major biomedical and life sciences company in Palo Alto, where a real estate company is busy with a major renovation of an old office complex.
For the Los Gatos car dealership site you just purchased, redevelopment does not seem to be included in the card, at least in the near future. According to Taxin, a partner of Meacham Oppenheimer, tenants have long-term leases that will not expire until 2028 and have the option of extending the lease.
“The place is irreplaceable,” Taxine said. “Penske has a $ 1 billion tenant. The Lamborghini store will be refurbished soon.”
The prospect of being able to buy a site in a prime location in Los Gatos has attracted many potential buyers, Taxin said.
“There were eight offers within 10 days,” Taxin said.