SAN JOSE – Gordon Biersch has cemented its long-term presence in San Jose with a deal to buy a brewery near the urban area of Japantown.
The real estate subsidiary of a renowned brewery has bought a large plot in San Jose, where Gordon Bierch operates.
“Gordon Birsch has been in San Jose for 30 years and we are now firmly in this deal here,” said Dan Gordon, chief executive officer of the brewery. “We wanted to control our own destiny. We wanted to be here forever. “
Gordon Biersch Real Estate Holdings subsidiary paid $ 11.8 million for the 3.1-acre site at 357 E. Taylor St., according to filings June 30. in San Jose, which includes a brewery complex.
“I am delighted to make this purchase,” Gordon said. “We have seen real estate in the South Bay rise in price. This will guarantee us a long life in San Jose. “
The total building area on this site is about 110,000 square feet, Gordon said.
The seller of the site was Exeter Brewery, which is controlled by a family led by William Bullard, who was formerly the main owner of Gordon Birsch. Gordon eventually bought out the Bullard group, which has now sold the East Taylor Street site to the Gordon group.
“It was a long and difficult process to bring this real estate deal together,” Gordon said. “It took about 18 months to complete the deal. We are fortunate to have Heritage Bank as financial partners. “
Heritage Bank provided Gordon Biersch with a $ 10.6 million loan to finance the purchase. Capital Access Group also provided $ 4.8 million in funding, filings with the Santa Clara County Registrar show.
Gordon said Gordon Birsch is also supported by local investors, including real estate executives Gary Dillabo and Terence Fox.
The increased stability from the ownership of East Taylor Street properties is a welcome counterbalance to some of the setbacks at Gordon Biersch.
Several years ago, the Gordon Biersch restaurant closed in downtown San Jose. Last year, primarily due to the coronavirus, the company closed its restaurant in Palo Alto.
The company is also preparing for a new generation of managers. Gordon said his son Oliver Gordon is the firm’s chief financial officer. And Dan Gordon lives in San Jose, “about eight minutes from work,” he said.
Gordon believes the brewery, located in the vibrant Juppantown area on the outskirts of downtown San Jose, could help revitalize the area around it.
This could happen with the return of Gordon Birsch’s Night Market in the next few weeks. The event, which launched in 2017, has been suspended throughout 2020 due to the coronavirus outbreak and related restrictions.
“We’re bringing street food, musicians, producers and breweries together for an outdoor event that the whole family can enjoy,” the event is described in a post on Gordon Birsch’s website.
The event takes place in a large car park next to the brewery and will run for several weeks in July and August this year.
“I’m trying to figure out if the San Jose Jazz will have more events here,” Gordon said.
In the end, Gordon hopes the company can strike a deal with the owner of a nearby property to offer samples and further raise the brewery’s profile.
“At some point, we would like to open a tasting room in an adjacent building near the back of our property,” Gordon said.