LOS GATOS — Two Los Gatos sites where luxury and upscale auto dealerships now operate have been bought by a busy real estate firm with a penchant for redeveloping properties in prime locations.
Sand Hill Property, acting through an affiliate, paid a combined $25.4 million for the properties near the corner of Los Gatos Boulevard and Blossom Hill Road, documents filed May 19 with the Santa Clara County Recorder’s Office show.
The two Los Gatos sites are currently occupied by Los Gatos Acura and Los Gatos Luxury Cars, whose brands include Rolls-Royce, Aston Martin, Bentley and Lamborghini vehicles.
Sand Hill Property paid $13.2 million for the Luxury Cars site at 620 Blossom Hill Road and $11.3 million for the Acura parcel at 16151 Los Gatos Blvd, according to the property records.
The purchase was arranged through brokers David Taxin and Jeremy Awdisho of Meacham Oppenheimer, a commercial real estate firm.
The Acura dealership is leased to a company controlled by Penske Automotive Group, a firm founded by Roger Penske, an entrepreneur and auto racing executive. Penske is also a retired race car driver.
The Luxury Cars dealership is leased to Price Simms Family Dealership, a family-owned automotive sales company.
Sand Hill Property is headed up by Peter Pau, a veteran real estate executive who has developed or is attempting to develop a number of high-profile properties in the Bay Area. Pau’s projects include plans to transform the old Vallco mall in Cupertino into a mixed-use village of homes, shops, restaurants, entertainment hubs and offices. He also has proposed the redevelopment of the El Paseo de Saratoga mall in southwest San Jose.
Sand Hill Property also has landed leases with big biomedical and life sciences companies in Palo Alto, where the real estate firm is busy with a major revamp of an old office complex.
In the case of the just-bought Los Gatos auto dealership sites, redevelopment doesn’t appear to be in the cards, at least for the near future. The tenants have long-term leases that dont expire until 2028 with options for extensions for the rental agreements, according to Taxin, a partner with Meacham Oppenheimer.
“The location is irreplaceable,” Taxin said. “You have a billion-dollar tenant with Penske. The Lamborghini store is about to undergo a remodel.”
The prospect of being able to buy a site in a prime location in Los Gatos enticed a number of potential buyers, Taxin said.
“We had eight offers within 10 days,” Taxin said.
