A two-story mixed-use building in downtown Los Gatos has been sold for $4.6 million, indicating a growing interest among investors in affluent small-town properties. The transaction, finalized through an all-cash deal, was documented on November 18, 2023, with the property being acquired by a South Bay investment group led by Brian Dexheimer.
Located at 21 and 23 West Main St., the building spans 7,200 square feet and is situated just a block from University Avenue. The retail spaces within the building are occupied by a wine-tasting room operated by Gali Vineyards and a nail salon named Tangles. At the rear, the structure houses two luxury apartments along with a large garage, which is anticipated to be transformed into an artist’s workshop by the new owner.
The Gali Vineyards tasting room opened its doors in 2021, showcasing wines produced on an 18-acre estate located in Corralitos, within Santa Cruz County. The tasting room has become a popular destination for both locals and visitors, contributing to the vibrant atmosphere of downtown Los Gatos.
John Machado, an Executive Vice President at Colliers, represented the sale and highlighted the strength of the Los Gatos market. “Downtown Los Gatos is a very strong market,” he stated. “It is comparable to downtown Menlo Park or downtown Los Altos. There is a lot of discretionary income here.”
Machado has considerable experience in the area, having sold approximately 15 similar buildings in downtown Los Gatos. He noted that the combination of high income levels and strict development regulations ensures ongoing demand for such properties. “In a high-income area with very strict controls on development, such as downtown Los Gatos, there is always demand for these properties,” Machado added.
This acquisition underscores a trend where investors are increasingly looking for opportunities in smaller, affluent towns that offer potential for growth and profitability. As urban centers continue to evolve, the appeal of mixed-use properties in desirable locations remains strong, making them attractive investment targets.
