Downtown San Jose Site Sells for $61.5MM

By Vladimir Bosanac

Gary Dillabough, a managing partner with Navitas Capital, has become somewhat of a prolific real estate investor in the downtown San Jose market in the last year. According to a report by the San Jose Mercury News, an entity called Valley Title Owner and associated with Dillabough, purchased another downtown San Jose site this month located across three parcels with addresses at 300, 310, 320 and 322 S. First St. and 345 S. Second Street for a combined $61.5 million, according to public records.

The seller of the property was a venture between Gerhard Guggenberger, a San Benito County area rancher, and Cupertino-based KT Urban, which has been actively pursuing a number of residential and mixed-used developments in San Jose’s downtown core in the recent years. “We are pleased with the sale of the Valley Title site to Gary Dillabough, given his vision for the future of downtown San Jose,” said Mark Tersini, principal at KT Urban, in the report.

The buyers also obtained a $43.2 million acquisition financing from Acore Capital Mortgage, according to county documents cited in the report.

The property is comprised of a surface parking lot for 300 vehicles and a building that was occupied by Valley Title and the San Jose Chamber of Commerce in recent history. It is not clear at this point what the new owner may do with the property, but there are several avenues that may be pursued.

This is a second parking lot purchased by Dillabough this year. In March, an entity associated with him purchased almost a third of the city block between E. Santa Clara Street and E. San Fernando Street at 35 S. 2nd Street, a 1.25-acre parcel, for $25.7 million, according to public documents. The lot is on the same block at the 90-year old, 122,000 square foot Bank of Italy office building, located at 12 South 1st Street, which Dillabough purchased in a joint venture with an entity associated with WeWork in December of 2017 for $30.6 million.

Along with his role at Navitas, Gary Dillabough currently serves as either a board director or observer on several boards, including View Glass, Lunera Lighting, Building Robotics, Honest Buildings and MyHealthTeams, according to Navitas’ web site.

West Coast Commercial Real Estate News