Carlos Club hits the market

The over 3,000-square-foot property at 612 El Camino Real is being represented by the brokerage team Steve Divney, Brett Weber and John McLellan and is listed for $3 million on the real estate website LoopNet. Duncan originally bought the property in 2008 for $800,000, he said, and invested up to a million dollars in repairs. 

“[The property] was falling down. It was in complete disrepair. When I rebuilt the building except for the front, it was exciting. It was a great project,” said Duncan, who owned and operated the night club in his late 30s from 2008 to 2014 while also owning the car dealership Duncan Motors. 

The historic venue, built in the 1920s, served as a restaurant for many years until being converted into a nightclub during the late 1940s. In 2014, Duncan leased the venue out to John Lee who, in the same year sought to renovate the building, changing its name to the Rail Club. 

Lee’s efforts were met with public outcry after he covered the neon Carlos Club sign with a temporary vinyl sign which he later restored back to its original form, said Mayor Ron Collins, noting the sign was frequently left dark. Collins also served on the council when Duncan first brought forward a proposal to develop an outdoor seating area in early 2012 which would have allowed over 100 patrons access to a food truck and live music. 

The idea was abandoned after the council, including current Councilman Mark Olbert, suggested Duncan establish a more permanent kitchen facility, said Collins. City staff also suggested the project posed a detriment to public peace and welfare. Duncan also faced resistance from then Sheriff’s Capt. Greg Rothaus who said the establishment was responsible for over 130 incidents within a year. It was noted then that many incidents were not directly related to the club or alcohol consumption. 

“The place was crazy, I mean packed every weekend. It was crazy fun and that’s why we had all those articles. We wanted to expand but ‘too many people come into town’ and ‘nothing good happens after midnight.’ You know what they say,” said Duncan. 

On preserving the building, Duncan, who still owns and operates Duncan Motors, said that decision should be up to the next building owner. Collins said he hopes the new owner would share the community’s interest in preserving the historic aspects of the structure, including the building sign. 

“It’s an iconic building that’s been around for a long time. … My hope would be that the new owner would keep the iconic sign and restore the name. It’s just a great name,” said Collins. “You can’t have the Carlos Club in Belmont or San Mateo. You have to have it in San Carlos.”  

Because of COVID-19, the bar has been closed since March and only temporarily permitted to reopen when the county was in one of the state’s least restrictive tiers for three weeks until being moved back into the red “substantial” risk tier Monday, Nov. 16. Duncan said the pandemic has not played an influence in his reason for selling, noting the real estate market has remained steady despite economic uncertainty. With eight years remaining on Lee's lease, Duncan said “everything is negotiable but the lease brings immediate cash flow to the buyer.” Lee did not respond to request for comment.

sierra@smdailyjournal.com 

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