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The original Sunset Nursery was founded in Oakland, California by Herman Sandkuhle and his partner Emil Carlson, after the two men were displaced from their jobs with the Cox Seed Company in San Francisco by the 1906 earthquake.

In 1924, property was purchased in Danville to provide additional growing grounds for their nursery.  A second retail operation was soon established at the new site.

Herman Sandkuhle's son, Herman Jr. followed in his father's footsteps.  The Oakland nursery was eventually closed and all operations were moved to Danville, where Herman Jr.'s children  Barry and Judy joined him in the family enterprise.

When the Sunset Nursery was demolished in 1985 to make room for a new housing development, Judy Sandkuhle moved the business to its current location at the south end of Danville and established the Sunset Color Nursery.