Family-owned land sold to e-commerce company with intention of creating job opportunities for local community
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.
Allison+Partners for Colliers Northern California
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