LOS GATOS — Two Los Gatos sites where luxury and high-end car dealerships now operate have been purchased by an active real estate company with a penchant for redevelopment of properties in prime locations.
Sand Hill Property, acting through an affiliate, paid a total of $25.4 million for the two properties, which are near the corner of Los Gatos Boulevard and Blossom Hill Road in Los Gatos, documents filed May 19 with the Santa Clara County Recorder’s Office.
Both Los Gatos locations are currently occupied by Los Gatos Acura and Los Gatos Luxury Cars. Los Gatos Luxury brands include Rolls-Royce, Aston Martin, Bentley and Lamborghini vehicles.
Sand Hill Property paid $13.2 million for the Luxury Cars dealership site at 620 Blossom Hill Road and $11.3 million for the Acura dealership parcel at 16151 Los Gatos Blvd, property records show. .
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 company founded by renowned entrepreneur and racing executive Roger Penske. Penske is also a retired racing driver.
The Luxury Cars dealership is leased to Price Simms Family Dealership, a family owned automobile dealership.
Sand Hill Property is led by Peter Pau, a seasoned property executive who has developed or is trying to develop a number of high-profile properties in the Bay Area.
Projects in Pau include plans to transform the former Vallco shopping center in Cupertino into a village of homes, shops, restaurants, entertainment centers and offices. Pau also proposed the redevelopment of the El Paseo de Saratoga shopping center in southwest San Jose.
Sand Hill Property also has land leases with major biomedical and life sciences companies in Palo Alto, where the real estate company is busy with a major overhaul of a former office complex.
In the case of the newly purchased Los Gatos auto dealership sites, a redevelopment doesn’t appear to be in the cards, at least not in the near future.
The car dealership’s tenants have long-term leases that expire in 2028 with options to extend leases, according to Taxin, a partner at Meacham Oppenheimer.
“The location is irreplaceable,” Taxin said. “You have a billion dollar tenant with Penske. The Lamborghini store is about to undergo a renovation.
The prospect of being able to purchase a site in a prime location in Los Gatos has attracted a number of potential buyers, Taxin said.
“We had eight offers in 10 days,” Taxin said.