A South San Jose car dealer has paid $6 million to gobble up a nearby parking lot, adding to its expanding footprint along the Capitol Expressway.
An affiliate of Del Grande Dealership Group bought the 2.3-acre surface parking lot behind its various dealerships at the Capitol Expressway Auto Mall at 909 Capitol Expressway Auto Mall, the San Jose Mercury News reported.
The seller was an affiliate of Kleinman Holdings, based in Saratoga.
The parking lot is next to the Capitol Volkswagen and Capitol Buick GMC auto dealerships, not far from the Capitol Chevrolet and Capitol Ford dealerships.
Del Grande Dealership Group, led by CEO Jeremy Beaver, operates all four auto retail businesses at the auto mall between the East Capitol Expressway and Foxworthy Avenue. It claims to be the largest family-owned automotive group in the Bay Area.
After its most recent deal, Del Grande now owns a contiguous stretch of parcels behind its dealerships on Capitol Expressway, Santa Clara County records show.
In March, a Del Grande affiliate paid $15 million for a 3.1-acre site next to the just-bought property. The 3.1-acre parcel is located at a T-intersection where Hillsdale Avenue, Pearl Avenue and Foxworthy Avenue meet.
The Del Grande group already owns, through prior purchases, the land and buildings for the Capitol Volkswagen, Capitol Buick GMC and Capitol Chevrolet lots, county documents show.
Miki Correa, a senior director with Cushman & Wakefield, a commercial real estate firm, arranged both Del Grande Dealership Group purchases completed this year.
“DGDG was pretty motivated to buy these two properties,” Correa told the Mercury News. “They now control a large site in the auto mall area.”
Del Grande is leasing the Capitol Ford building from a Kleinman Holdings affiliate. At one point, the Kleinman affiliate considered selling the Capitol Ford property, but later scrubbed the sale.
— Dana Bartholomew
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