Developer Peter Pau, who has built his business revitalizing shopping centers throughout the South Bay, has purchased Saratoga’s Quito Village.
Pau, who is currently redeveloping downtown Sunnyvale, paid $26 million for the aging Saratoga center in a deal that closed Tuesday, according to David Taxin, a principal with Meacham/Oppenheimer.
Taxin handled the sale for both Pau and sellers Bob Longinetti and his partners Kelly Heil and Pete Dana. Taxin said the 80,000-square-foot center, located on Cox Avenue and home to Gene’s Fine Foods and a 24 Hour Fitness, was never advertised for sale.
In January, the sellers, who bought the six-acre site four years ago for $16 million, called Taxin and told him they wanted to sell. Taxin said he sought out Pau first because he has owned the 10-acre office site next door for the past three years.
“That was the most important piece because Peter could control the entire piece and decide long term what to do,” Taxin said. “They’re very good properties together. They can be reworked and remodeled.”
Despite its age, Taxin said there is always a lot of interest in Quito Village because Saratoga – where the average income is $200,000-plus – offers few places to shop.
“It will take some major attention and some remodeling,” Taxin said of the 30-year-old site that was remodeled in 1997 under the previous ownership.
Pau could not be reached for comment Tuesday.
With his wife Susanna, Pau founded San Mateo-based Sand Hill Property Co. in 1987. They have since turned the failed Fashion Island mall in San Mateo into Bridgepointe Shopping, and revitalized the outdated Cupertino Village.
He tackled his most ambitious project to date when he agreed to do a joint venture with RREEF, a real estate investment firm, to develop the Sunnyvale Town Center. The shuttered 1970s-era enclosed mall was recently demolished to make way for 950,000 square feet of retail space, 315,000 square feet of offices, restaurants, a movie theater and about 300 townhomes.
Pau also owns the Sunnyvale Town & Country, next to the former mall, where more shops and housing are planned.
In Cupertino, the developer recently sold the Oaks Shopping Center, but still owns the former site of Anderson Chevrolet, where he plans to construct an office building. In Los Gatos, Pau owns the former site of Swanson Ford, where he eventually would like to build a retail/residential development, he has said.
Pau is currently obtaining entitlements from San Jose to develop an 18-acre site near Brokaw Road and Interstate 880 for a Lowe’s home improvement store.
Contact Katherine Conrad at kconrad@mercurynews.com or (408) 920-5073.
