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Colliers Facilitates Sale of 60 Acres in Gilroy

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Family-owned land sold to e-commerce company with intention of creating job opportunities for local community

Silicon Valley, Calif. January 11, 2022 – Colliers, a leading diversified professional services and investment management company, recently facilitated the sale of 60 acres of farmland in Gilroy. The property, now owned by a well-known e-commerce company, is zoned for retail, industrial and R&D use and is located in a high density retail area on the Pacheco Pass Highway.

Colliers’ executive vice president John Machado represented Machado Family Partners in the sale.

"The Machado Family is very pleased with the new ownership’s plans to develop a distribution hub on the property. This will not only create jobs for the Gilroy community during the development and construction process but after the project is complete, providing efficient e-commerce solutions for Silicon Valley and beyond," said Machado. The property was originally acquired by John H. Machado and has been in the Machado family for three generations. Over the years, two owners within the ownership group, all members of the Machado family, were bought out by the four remaining co-owners.

The plans for the site have transformed throughout the past 30 years. The current ownership group inherited the property when it was farmland and protected under the Williamson Act, also known as the California Land Conservation Act of 1965. The Williamson Act enables local governments to enter into contracts with private landowners for the purpose of restricting specific parcels of land to agricultural or open space use. The ownership group eventually decided to remove the property from the Williamson Act, a process that took 10 years, and later annexed it to the City of Gilroy. The Machados then formed a Mello-Roos tax district with the adjacent property owners to raise funds for off-site improvements. The funds raised for offsite improvements were in the form of a bond district with 25 years of amortization. Final bond payments were made in 2021.

Thirty years ago, the ownership group entered a joint venture agreement with Kimball Small Properties, developer of the San Jose Fairmont Hotel, to develop the land into “Garlic Country USA,” a concept that they hoped would become a music and entertainment destination similar to Branson, Missouri, however the plans never came to fruition. Later, the ownership group was approached about developing the property into a retail destination that would complement the adjacent properties. They eventually created a subdivision map to divide the property into multiple parcels. Approximately two years ago, the remaining owners decided to offer the property for sale to a single user or developer.

 

Media Contact:

Solana Tanabe

Allison+Partners for Colliers Northern California

solana.tanabe@allisonpr.com

 

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 65 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 26 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.6 billion ($4.0 billion including affiliates) and $46 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.



 

 


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John Machado

Executive Vice President

Silicon Valley

John B. Machado was born, raised, educated and resides in Santa Clara County. After passing the Bar Exam, John practiced for two years in his Family's law firm emphasizing Real Estate Law. It was at this point when John realized his true calling was real estate not law, so he left the family business and took a job at the San Jose office of Grubb & Ellis Company Retail Properties group.

While at Grubb & Ellis Company John Machado was a consistent top performer. Within his first three years at Grubb & Ellis Company, John obtained the title of Senior Marketing Consultant (a title given to the top 3% of Agents nationwide). John was the youngest and first Retail Senior Marketing Consultant for the San Jose Office. The Association of South Bay Brokers named John the top Retail Broker in the Valley in 1990, 1992 and 2002. In early 1994, John left Grubb & Ellis Company after a 10 year practice and took a position with Colliers International where he is a Senior Vice President in charge of Retail Properties. Through his career, he has brokered approximately 1,000 ± leases and sales all of which are of the Retail product type.​

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