LOS GATOS — A building that contains a wine-tasting room and nail salon has been bought in a deal that suggests investors are seeking opportunities to buy properties in small, but affluent downtowns.
A South Bay group paid $4.6 million to buy a two-story mixed-use building in downtown Los Gatos, documents filed on Nov. 18 with the Santa Clara County Recorder’s Office show.
The buyer is an affiliate headed up by Brian Dexheimer, who is based in Saratoga, state documents show. The group bought the property through an all-cash deal.
At 21 and 23 West Main St., the 7,200-square-foot building is a block from University Avenue, according to a marketing brochure circulated by the broker on the purchase, Colliers Executive Vice President John Machado.
Gali Vineyards tasting room and Tangles nail salon occupy the retail spaces. The rear of the building contains what’s described as two luxury apartments and a large garage that is expected to be used as an artist’s workshop by the new owner, according to Machado.
The tasting room opened in 2021 and features wine produced by Gali Vineyards on an 18-acre site in the Santa Cruz County community of Corralitos.
“Downtown Los Gatos is a very strong market,” Machado said. “Los Gatos is like downtown Menlo Park or downtown Los Altos. There is a lot of discretionary income here.”
Machado said he has sold about 15 buildings of the same type in downtown Los Gatos and believes they can be well-positioned to entice buyers.
“In a high-income area with very strict controls on development, such as downtown Los Gatos, there is always demand for these properties,” Machado said.