Sand Hill Property Buys Two Los Gatos Sites for $25.4MM

Los Gatos Sand Hill Property Luxury Cars Bentley Rolls-Royce Motor Cars Aston Martin Acura redevelopment Netflix

By Vladimir Bosanac

One of the most exclusive towns in Silicon Valley may be getting a new redevelopment in the near future. Sand Hill Property purchased two lots in Los Gatos worth a combined $25.4 million. The properties, which today are home to two auto dealerships, sit on a very busy corner of the town and could provide an interesting opportunity for the new owners.

The news was first covered in a story by the San Jose Mercury News.

The two properties are located at 620 Blossom Hill Road and 16151 Los Gatos Blvd., and they are home to a Luxury Cars dealership (home to Bentley Los Gatos, Rolls-Royce Motor Cars of Los Gatos and Aston Martin Los Gatos) and Los Gatos Acura, respectively. The property at 620 Blossom traded for $13.2 million, and the 16151 Los Gatos site was purchased for $11.3 million.

Both sites were owned by entities associated with the Bowen family.

It is not clear at this point what Sand Hill Property plans to do with the sites. The locations are along Blossom Hill Road and Los Gatos Blvd., which are major thoroughfares within the city where most commercial activity is happening. While the tenants have leases on the property that run through 2028 with options to extend them, Sand Hill has proven to be a patient investor, and it may extend those for the time being. 

Sand Hill Property sees potential in the Los Gatos community, which is a very small city, and the firm has invested there in the past. In January of this year, the company sold a medical office building in the city to a joint venture of The Carlyle Group and Anchor Health Properties for $52,750,000. 

Located at 15400 Los Gatos Blvd., the asset is known as Los Gatos Center and is currently occupied by Sutter Health. The building totals 40,000 square feet and sits on just about two acres, according to Sand Hill’s website. Sand Hill originally developed the property and specifically customized the asset for Sutter Health’s use. Sand Hill spent $26 million to develop the asset, while Sutter Health spent another $20 million on tenant improvements.

Sand Hill Property Company is a real estate investment and development firm headquartered in Silicon Valley with more than four decades of experience creating Bay Area communities that improve the way we work, live and connect, states the company on its website. The company has developed and invested in more than 65 projects encompassing 20 million square feet of building area throughout Silicon Valley, ranging from stand-alone retail stores to mixed-use city centers. 

On its website, Sand Hill lists The Grove, a 485,000 square foot, 4-building property located along Albright Way in Los Gatos, as part of its featured properties. The property is home to streaming media giant Netflix.

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