A two-story mixed-use building in downtown Los Gatos has been sold for $4.6 million, signaling a growing interest among investors in the region’s small but affluent markets. The South Bay-based investment group, led by Brian Dexheimer, finalized the acquisition through an all-cash deal, as detailed in documents filed on November 18, 2023, with the Santa Clara County Recorder’s Office.
Located at 21 and 23 West Main St., the 7,200-square-foot property is positioned just a block from University Avenue. It currently hosts a wine-tasting room operated by Gali Vineyards and a nail salon named Tangles. The back of the building features two luxury apartments along with a large garage that is anticipated to serve as an artist’s workshop for the new owner, according to John Machado, Executive Vice President at Colliers, who represented the buyer.
The Gali Vineyards tasting room opened its doors in 2021, showcasing wines produced on an 18-acre estate in the Santa Cruz County community of Corralitos. This establishment has become a part of the local community, contributing to the vibrant downtown atmosphere.
In his assessment of the market, Machado noted, “Downtown Los Gatos is a very strong market.” He likened it to other affluent areas such as downtown Menlo Park and downtown Los Altos, emphasizing the significant discretionary income available in the region. Machado has successfully sold approximately 15 buildings of a similar type in downtown Los Gatos, reinforcing his belief in the property’s potential to attract buyers.
He further explained that in a high-income area with stringent development regulations like downtown Los Gatos, demand for such properties remains consistent. “There is always demand for these properties,” Machado stated, highlighting the enduring appeal of the location.
The acquisition reflects a broader trend among investors seeking opportunities in established markets where growth potential is coupled with community desirability. As downtown Los Gatos continues to thrive, the recent purchase of this mixed-use building underscores the confidence investors have in the area’s economic stability and attractiveness.
