Numerous garage-condo projects have sprung up recently in Northern California. While it’s certainly true that these real estate developments hold special appeal for car collectors and other motorsports enthusiasts, jumping to the conclusion that garage-condos only interest a micro-niche of buyers — and therefore have limited upside potential — is clearly not correct.
Rather, these garage-condos have proven to be attractive to a surprisingly broad group of owners and investors — which has led to exceptionally rapid sales and solid investment returns.
$100 Million Worth of Product Totaling 250 Units
In rapid succession, four different automotive-driven garage-condo communities have recently been developed in the area.
- Club Auto Sport, San Jose — 86 units
- Garage Unlimited of Santa Cruz — 52 units
- Garage Unlimited of Monterey — 46 units
- Monterey Motorsport Park — 88 units
Club Auto Sport and the two Garage Unlimited complexes sold out within the past few years. Sales at Garage Unlimited of Monterey were so brisk that the complex was nearly 75% spoken for by the time construction was completed in April of 2017.
Monterey Motorsport Park is scheduled to break ground in a few months, with completion slated for early 2019, and already this newest complex is nearly 30% reserved. That’s 252 garage-condo units worth approximately $100 million that have come onto the market in a very short time — evidence of strong, sustained demand.
Driving Force Behind the Strong Sales
The brisk sales of these luxury garage-condos have been driven by a number of factors:
- The rise of collector cars and motorcycles as “passion investments,” with returns on the most desirable makes and models of as much as 500% over the past decade — far outstripping other investments such as fine art and antiques
- A scarcity of quality, safe storage spaces for these types of car collections and high-performance track cars
- The glaring need for homeowners in neighborhoods such as Carmel for more garage space for storing household items — from vacation-home furniture to holiday decorations — and even business files and materials
- The high cost, complexity and amount of time it takes to expand or build a new residential garage — even if a homeowner has the property needed for the project
Resales Illustrate Investment Potential
Resales that have taken place at the three completed complexes demonstrate that these garage-condos not only sell well, but they also have the potential to substantially increase in value over time. On a recent resale at Garage Unlimited of Monterey, an owner who paid approximately $250 per sq. ft. for his garage-condo sold it for approximately $280 per square foot after holding it for only nine months. That’s an annualized return of approximately 16%.* In addition, an owner at Club Auto Sport in San Jose recently resold his car condo for a gain of 27% after only 10 months.
Don’t Miss This Timely Opportunity
If you’d like to know more about the next generation of luxury garage-condos at Monterey Motorsport Park — with their stylish exteriors, large roll-up doors, ceilings of up to 25 feet, and spacious mezzanines that can be customized into offices or personal retreats — contact one of our brokers.
But don’t wait. While 2019 may seem far off, with 30% of the units already reserved, you’ll want to get in touch while there’s still a good selection. Contact us Today!