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 properties on the corner of Los Gatos Boulevard and Blossom Hill Road, documents filed May 19 with from the Santa Clara County Recorder’s Office broadcast.
Both Los Gatos locations 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, 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 Roger Penske, an entrepreneur and racing executive. 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 real estate executive who has developed or is attempting 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. He also proposed the redevelopment of the El Paseo de Saratoga mall in southwest San Jose.
Sand Hill Property also has land leases with major biomedical and life science 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 recently purchased Los Gatos auto dealership sites, redevelopment doesn’t appear to be in the cards, at least not in the near future. Tenants have long-term leases that don’t expire until 2028 with options to extend leases, according to Taxin, a partner at Meacham Oppenheimer.
“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.