Vacant Los Gatos corner to become Tesla, Whole Foods

Two major retailers are slated to fill an empty space in Los Gatos that’s been partially vacant since 2008.

Sand Hill Property Company is putting in a Whole Foods Market and a Tesla showroom and service center between 15500 and 15650 Los Gatos Blvd., where a Moore Buick General Motors Company and Chevrolet dealership were previously located. The development sits on more than 7 acres and is under construction. Los Gatos greenlit the final approvals and permits last year.

The existing Whole Foods in the Cornerstone of Los Gatos shopping center, at the intersection of Los Gatos Boulevard and Blossom Hill Road, will relocate into a larger, roughly 43,000-square-foot space. The market is planned to open between late 2025 and 2026, while Tesla is expected to open in early to mid 2025.

Steve Lynch, Sand Hill Property Company director of planning and entitlement, said the project fills a spot that’s been blighted for years. The Palo Alto-based company is also developing Cupertino’s largest housing project at the former Vallco Mall site.

“Los Gatos is a premium community and to have (a) vacant building on the corner sit in a derelict state for that long, it was really an eyesore,” Lynch told San José Spotlight.

The new Tesla location fits with the town’s demographic and its neighbor Saratoga. Los Gatos’ average annual income per household from 2018 to 2022 was about $198,000 and Saratoga’s was $237,730, according to the U.S. Census Bureau.

Councilmember Maria Ristow said constituents have complained to her about the empty space on one of the town’s main corridors. She sees the redevelopment of the corner as a positive addition that could make the town more walkable.

“Los Gatos calls itself a full-service community, and I know it’s important to attract businesses that our residents desire,” she told San José Spotlight. “These businesses will add to the vitality of Los Gatos Boulevard, meet the existing demand for products and increase sales tax revenue, which helps pay for the town services and infrastructure improvements our residents value.”

The redevelopment adds to an already up-and-coming area, with the potential for large residential buildings. Across the street, a 7-story, 238-home development has been proposed that would replace sections of the New Town Shopping Center. Developer Arya Properties LLC has also proposed a project with 182 condos down the street at the Ace Hardware.

The proposals are largely due to Los Gatos’ late state approval of its housing plan. The town must accommodate at least 1,993 new homes by 2031 to meet its state-mandated housing goals.
Santa Clara County resident Wade Bastien, who has lived in the county’s unincorporated hillside near Los Gatos for about 14 years, said he wants to see more incremental development like the Whole Foods, rather than large housing projects. He said he’s not against growth, but bigger projects could hurt Los Gatos’ small town charm.

“(Large housing development is) going to change the dynamics in many different ways,” he told San José Spotlight. “Change is inevitable, but is it necessarily a good thing for the people that live here today?”