This building occupies a spot that was once in the north- west corner of Rancho San Miguel/Milpitas. One of the first Anglo settlers of the area, Michael Hughes, bought it from Juana Galindo Alviso, widow of Jose Maria Alviso, for $225 in 1856. The land, probably including buildings, was rapidly transferred through several owners and ended up belonging to Augustus Rathbone. It may be the oldest continuously occupied commercial lot in Milpitas.
Rathbone established a saloon on the property, and by 1862, Rathbone’s Saloon was the site of the first recorded murder in Milpitas (the killer escaped). In the 1880s, the saloon was replaced by a hotel operated by a man named Goodwin, who probably kept a saloon downstairs. That hotel burned prior to 1900, perhaps in the same fire that destroyed French’s Hotel a few feet north and across the Alviso Road (now Serra Way).