While real estate shortages and stubbornly high interest rates put the purchase of a home out of reach for many people, those with the means are willing to spend millions on condos for their luxury cars.
This is not a fancy garage.
“A garage is a unit attached to a residential building.” James Pilkington by Weichert Realtors – Paradise Homes tells Realtor.com. “A car condo is specifically designed as a larger storage space for multiple or collection of cars. Like any other condo in Southwest Florida, it will be owned by (the buyer).”
And like most other condominiums, there is a homeowners association that charges monthly fees to cover common area maintenance, maintenance, and standard insurance. Cars must be insured separately.
A car unit often includes a mezzanine or clubhouse where the owner can relax or entertain while enjoying their vehicles – either taking them for a spin or simply displaying them.
These luxury car residences can start in the low $700,000s and go up to $2 million. Additionally, an owner will often spend hundreds of thousands of dollars retrofitting the unit with entertainment and dining areas, a kitchen, and even a full living area. Some will also install car lifts to accommodate more cars.
The condos “will be very luxurious,” says Pilkington, who directs sales and marketing for Prima Auto Condos, a 33-unit luxury car storage facility that is nearly complete in Naples, Florida. “No different than the owners’ homes.”
But as luxurious and comfortable as the rooms are, there is no place to stay overnight. According to the law and permit, these condominiums are intended for cars and not people.
Prima Auto Condos’ units are priced up to $1.2 million and range from 1,750 square feet to 2,125 square feet on the first floor and mezzanine. Some accommodations have private outdoor terraces.
All units are fully air-conditioned, feature 18-foot ceilings and feature secured keypad and card reader security, 24/7 cameras and alarms, emergency lighting, thermostats and occupancy sensors. The largest unit can accommodate up to seven cars. Thanks to the large waiting hall, cars can be easily driven in and out.
And yes, those with extensive car collections – sometimes 20 or more cars – often purchase multiple units.
If someone has about a million to spend on a condo with a car, why not just build a luxury garage on the owner’s property? The reasons are varied.
“Many people live in gated communities, so there is a limit to building a garage,” Pilkington explains. “A second reason is that while they can build a larger garage space in certain areas of Southwest Florida, Naples and Collier County, their vehicles may not be insured due to flooding.”
Prima added additional infill to raise the building enough to qualify as a zone. These, the broker said, “are valued by insurance companies when insuring multi-million dollar vehicles.”
And since this is South Florida, the complex is built to withstand Category 5 hurricanes, with impact glass and doors and all the “bells and whistles” for extreme weather, the broker says.
Who owns a car condo?
While some car collectors are local, most are only in the state for the winter season but leave their cars behind. These car enthusiasts may live primarily in an urban core such as New York City, where there is generally no space to park their exotic and extremely valuable vehicles. In general, the owners hold on to the condominiums for the long term.
If you are looking for a luxury condo with a car, how can you buy one? Pilkington says it’s not as easy for people as buying a condo.
“They are neither commercial nor residential,” he says, explaining that while car condos are listed on the Multiple Listing Service, they can be difficult to find because of this gray area classification.
The broker says the auto condo industry relies heavily on geo-targeted marketing such as billboards, signage and presence at auto events such as “Cars and Coffee,” as car enthusiasts tend to have the condos close to home.
The broker notes that the South Florida industry has grown significantly over the past five years and then exploded over the past two years. According to Only Garage Condos, the Sunshine State is one of the top garage condo markets in the country, with 59 garage condo projects in 32 cities and over 2,600 units.
The state not only attracts many car enthusiasts, but also wealthy individuals who can afford several exotic vehicles such as Ferraris or Porches.
Naples, says the agent, has a particularly strong exotic car culture – as evidenced by the Lamborghini dealer near the condominium building – and is also one of the wealthiest metropolises in the country. The combination means a strong market for car condos.
There are several other high-quality auto condo providers in the city, including JetPort Motor Suites and Naples Auto Vault.
The typical car condo owner
So what type of person buys a condo with a vehicle?
“The simple answer is that these are people who can spend a million dollars on a condo with a car,” Pilkington says with a laugh.
The more detailed answer is that the average owner ranges from younger, successful executives to older retirees who have had decades to amass car collections.
“These are people who value cars and have increased their wealth,” he says.
In general, those who buy a condo have multiple cars – they don’t just spend on one specific car, no matter how expensive it is.
“If they have that one exotic vehicle, they can store it in their own garage,” the agent says. The typical condo owner has at least three expensive cars.
“There’s a gentleman I’m talking to right now who owns over 20 porches,” he notes. Another buyer, who opted for multiple units, has an eclectic collection of “high-end European cars” as well as “classic high-end American-made cars.”
The broker claims he’s seen a lot of women with a car, Jones – although he admits the women are usually tied to a male partner/car lover.
“A lot of it is a shared decision between people in a relationship,” he says. “Couples who appreciate cars together.”
Price increase for car condominiums
While the broader Florida condo market, with exceptions like Palm Beach and Miami, has experienced a downturn recently, the agent says car condos tend to appreciate in value, although he didn’t have exact numbers.
“It’s hard to have a clear idea of what the appreciation will be,” he says. “Some of the condos that were built years ago are generally very popular.”
And while the agent notes that most condo buyers are likely motivated by passion rather than investment, he says, “You know what, a lot of people will buy them with the expectation of appreciation or return on investment.”
As far as the cars themselves are concerned, the general rule applies that vehicles lose value the moment they are driven off the lot. However, this is usually not the case with collector cars like a Ferrari F40, a Shelby Cobra or a vintage Bugatti, which can be highly appreciated.
But beyond a safe and glamorous place to park their prized cars, condo owners also care about the social aspect.
“You’ll probably meet people you want to spend time with,” he says. “It’s a great way for these owners to build relationships.”
