Jacksonville Inn property up for grabs again, but businesses on site unaffected

Published 4:15 pm Monday, November 13, 2023

The Jacksonville Inn at 175 E. California St. is available for just over $3.1 million, but has not been officially listed.

The historic Jacksonville Inn is up for sale for the second time in just over two years.

Investment group ADLO LLC announced last week that the property at 175 E. California St. was available for just over $3.1 million.

Co-owner Laz Ayala, one of four partners who own the building, said the group has already heard from a number of interested parties and that the property might not even be officially listed if a buyer comes through beforehand.

Ayala said the investment group — made up of local residents who purchased the property in August 2021 — decided to list it for sale due to the complexities of collaboratively managing a single property owned by four different entities.

“It’s just too many cooks in the kitchen, so to speak. It’s a wonderful partnership, it’s just become too challenging, managing it between four different partners. It’s just too much, in general, all the way around,” Ayala said Monday.

“We all have our own businesses, and it’s really hard to find the time to dedicate to the inn … to really do it justice. It’s a property that requires a lot of attention.”

One of Gold Rush-era Jacksonville’s first permanent structures, the eight-room Jacksonville Inn was built in 1861. Former owner Jerry Evans purchased the building in 1976. He and his wife, Linda, ran the business — including the hotel and restaurant — for 45 years.

Evans told local media in 2021 that he hadn’t listed the property for sale but had been approached by the investment group.

Since taking over, Ayala and partners renovated the boutique hotel and wine bar and leased other portions of the property to various businesses.

At ground level is a Sotheby’s real estate office while The Restaurant at the Jacksonville Inn inhabits the downstairs dining space. The wine bar also is independently operated, while the four owners oversee hotel operations.

“What we are selling is just the property. All the businesses operating out of there are running uninterrupted and are business as usual,” Ayala said.

“They all have long-term leases. We want to really put the word out that this is for the property and not the businesses.”

Restaurant owner and chef Todd Meyerhofer, whose family reopened the restaurant earlier this year, said he and his employees had received a slew of phone calls about the property being up for sale.

Customers, he said, misunderstood that sale of the building meant that his restaurant was closing.

Meyerhofer said he and other business owners found out about the building sale only days ago.

“They stopped by the night before they announced it, just to give us all a heads-up,” said Meyerhofer.

“We didn’t know anything previous to that.”

Meyerhofer said he had few concerns about the property changing hands, given he has a long-term lease.

“I’m not sure if there are reasons to be concerned yet. Time will tell,” he said.

“Our expectation is we’ll be here for the next 10 years, for the rest of our lease, and that we’ll have a great relationship with whoever the new owners are going to be. We’re fully operational and doing very well. … I think part of the selling point for the building is that they’ve got all these different tenants already in here.

“It’s a great property” Meyerhofer added. “I’m sure they’ve already got some people who were interested before they even made the announcement.”

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