Real estate investors grab choice downtown Los Gatos sites
LOS GATOS – Two investment groups, including a seasoned Bay Area construction company, have bought retail properties on the same block in one of the Bay Area’s hottest business parks, downtown Los Gatos.
The deals suggest investors will continue to seek out select Bay Area properties that could thrive and uncover survivors even after the coronavirus-triggered economic tsunami retreats.
Both accommodations are located on North Santa Cruz Avenue, a few doors apart, in downtown Los Gatos.
Devcon Construction of Milpitas, one of the largest general contractors in the Bay Area, bought a site. An investment group based in the suburb of El Dorado Hills in the Sierra, led by Kenneth Ryan Koch, bought the other property.
Interest in Los Gatos is growing: Chicago-based Oxford Capital Group has just bought Hotel Los Gatos, a boutique hotel just blocks away in downtown.
Milpitas’ Devcon paid $ 11.2 million for a retail building at 26 N. Santa Cruz Blvd. in Los Gatos, Santa Clara County show public documents filed on December 11th. The tenant of the building is Restoration Hardware.
The Koch Group paid $ 14 million for a retail building on 2 N. Santa Cruz Blvd., according to filings filed on October 22nd. An Internet service provider has a location in the building.
“This is prime retail space in the heart of Los Gatos,” according to a previous listing of the building sold by CBRE, a commercial real estate company.
On the same section of North Santa Cruz Avenue as the properties you just bought are: an Apple retail store, Orens Hummus, Pizza My Heart, Great Bear Coffee, Pastaria & Market, Andale Taqueria, and Gardinos Ristorante Italiano.
Location 2 N. Santa Cruz is known as The Park Vista Building, according to a post on the LoopNet commercial property website. It was built in 1932.
“The property used to be a bank and it retains some of its historical features,” the LoopNet post read.
About half a mile from the North Santa Cruz properties, Oxford Capital purchased the Los Gatos Hotel, 72-room property at 210 E. Main St., on Dec. 10 for $ 21.1 million.
All of these deals show that investors remain confident about the future of commercial real estate in Silicon Valley, including markets like Los Gatos.