Big Bay Area auto dealership group widens footprint with San Jose deal

SAN JOSE — One of the Bay Area’s biggest automotive dealerships has widened its footprint by purchasing a property next to an auto row in San Jose.

Del Grande Dealership Group (DGDG) has bought a 2.3-acre site currently occupied by a surface parking lot behind some of the vehicle dealerships that line San Jose’s Capitol Expressway auto mall, according to documents filed with Santa Clara County officials on Aug. 19.

An affiliate of the DGDG vehicle retail company paid slightly less than $6.1 million for the parking lot, a deed filed with the County Recorder’s Office shows.

The parking lot is adjacent to the Capitol Volkswagen and Capitol Buick GMC auto dealerships and is near the Capitol Chevrolet and Capitol Ford dealerships. Del Grande Dealership Group operates all four of these auto retail businesses.

An affiliate of Kleinman Holdings sold the property to the DGDG group.

With the most recent deal, Del Grande now owns multiple contiguous parcels behind the dealerships that it operates on Capitol Expressway, county records show.

In March, a Del Grande affiliate paid $15 million for a 3.1-acre site next to the just-bought property, county documents show. The 3.1-acre parcel is located at a T-intersection where Hillsdale Avenue, Pearl Avenue and Foxworthy Avenue meet.

Miki Correa, a senior director with Cushman & Wakefield, a commercial real estate firm, arranged both Del Grande Dealership Group purchases that were completed this year.

“DGDG was pretty motivated to buy these two properties,” Correa said.

The Del Grande group also owns, through prior purchases, nearby buildings and land where the auto dealer operates Capitol Volkswagen, Capitol Buick GMC and Capitol Chevrolet, county documents show.

“They now control a large site in the auto mall area,” Correa said.