TGIF. This is The Shake 🤝 : the weekly newsletter that sweetens up your Friday mornings like a good ole throwback song on the way to work.

Here’s what we're dishing up this week:

• Dude, where’s my car garage?

• 10x Trailer Park Edition

• Weekly Giveaway 🎰 

MARKET RADAR

Dude, Where’s My Car Garage?  

A new class of real estate is carving out its own lane 🏎️ (pun intended) in affluent regions across the US.

Car enthusiasts, hobbyists, and wealthy individuals tired of their wives yelling at them for having “too many toys” around the house are finding garage condos to be the perfect solution.

Customizable for various uses, it’s clear to see why anyone who can afford to buy one would want one 👇️ 

So what are they exactly?

Garage condominiums are private storage bays that are designed to store cars, motorcycles, boats, and recreational vehicles (RVs).

Typically developed in larger commercial or industrial buildings, each unit is sold separately with its own recurring association fee to upkeep the community. Most units offer 24/7 security, climate control, and amenities such as electricity, running water, and lounge areas.

In layman's terms, it’s a badass Man Cave.

Why are they gaining popularity?

Frankly, who doesn’t like a tailored space for like-minded people to work, throw festivities, network, and have a good reason to get out of their primary residence once in a while?

According to data from Statista, the global classic car market is expected to grow from about $30.9 billion in 2020 to $43.4 billion in 2024. This doesn’t include the exotic car market either.

These car communities are constantly adding new members and most owners either don’t have enough space in their residences or don’t have a good place to flaunt their toys.

In states like Florida and Texas, developers are stepping on the gas and building Garage Condos due to the influx of new residents. Many come with extra “baggage” of exotic collectible cars.

Scott Allan, developer of Island Storage in Fort Myers, says many of his owners came from up north after selling their homes. Once in Florida, they felt handcuffed because they didn’t have garage space for their collections and refused to sell their toys.

The solution?

An investment in 1,200-3000 sqft of secure, private customizable space to pursue your passions, work, and grow your network.

Ok… How much we talkin?

We dug into multiple garage condo developments to see the different styles and costs.

Purchase prices depend on location and level of amenities - which we see as the main differentiator between standard and luxury.

On the west coast of Florida, standard garage condos in Ft. Meyers go for $230-275/sqft.

FYI, that’s more than the average price per square foot for a home in Fort Myers, which is $236/ft.

Head over to Tampa, and you have The Enclave which is a $100M facility with racetracks alongside their garages.

These go anywhere from $300k-$1.7M. Owners pay a $30,000 fee to join, along with a $6,000 annual fee.

Meanwhile, on the east coast of Florida in West Palm Beach, luxury garage condos like The Hangar are going from $600k-$2M!

These can range from 1,300-5000+ sqft. Association dues ring it at $0.35/ft per month with access to a private owners lounge and board room loaded with golf and driving simulators and a rooftop sundeck.

With an extremely limited supply, these condos tend to appreciate in value, making them a solid investment to own.

From our research, demand is strong and reservations are being sold out before development is even complete - enticing developers to build phase 2s to lock up local demand.

First movers in their market seem to be the clear winners in garage condo development. Oversupply looms as a key risk factor due to the niche demographic of buyers.

All in all, I know what I'm buying when I have a ’67 fastback and an extra $500k laying around…

10x Trailer Park Edition

I Doubt Many Rap Stars Came From This Mobile Home Park

Welcome to the lap of luxury, my friends. We’re not talking about mansions, yachts, or private jets, oh no. We’re talking about something even better.

Sorry, B Rabbit, but this trailer park is for those who know of the “finer things in life” (I guess?).

The East Coast brain in me doesn’t compute. Californians will try (and many times succeed) in making anything luxurious. A trailer park? That’s luxury?

Well, in this case, I guess it is.

Paradise Cove Mobile Home Park (sounds so ‘Black Mirror’-ish it hurts) with its 256 trailers and manufactured homes, has had homeowners such as Matthew McConaughey & Stevie Nicks. 

Located in Malibu, California, is in a prime location along the Pacific Coast Highway and has stunning views of the ocean. If you like to surf, it’s not a bad place to be.

Let’s talk about buying one of these mobile homes.

It may surprise you how the entire deal comes together: Unlike traditional homes, mobile homes can be moved from one location to another, which means they don't qualify for a traditional mortgage. 

Instead, buyers must pay for their homes in cash 💰️ or secure financing through specialized lenders who cater to the mobile home market. This means that only the wealthiest buyers can afford to purchase homes in the most exclusive trailer parks.

With these luxury mobile home parks costing millions (yep 🤯 ) it’s almost utterly unbelievable to think that your uncle Bill was right when you told him that you got into real estate: “It’s really location, location, location.”

But what do you get for your millions of dollars?

Well, let’s talk about the real reason people want to live in a trailer park: The sense of community.

There’s nothing like sharing a cramped living space with a bunch of strangers to bring people together.

And at Paradise Cove, you’ll have plenty of opportunities to bond with your neighbors over a cup of coffee in the clubhouse. And who doesn’t love a good community event? Movie nights, holiday parties, and even parking lot potlucks.

You name it, they’ve got it.

Is that worth over $5 million like some of these people are paying?

That’s for the market to decide, I guess. I just don’t know how some buyers can look past the fact that this is still very much a living situation that comes with challenges.

For one thing, mobile homes are subject to the same wear and tear as traditional homes, but they often require specialized maintenance that can be costly.

Additionally, mobile homes are subject to the whims of the weather, which means residents may have to contend with strong winds, heavy rains, and other natural disasters. Not for me personally, but 🤷

Long story short, if you’re looking for a trailer park that has it all (actually never thought I’d type that), then Paradise Cove Mobile Home Park is the place to be.

But before you start packing your bags and getting ready to move in, just remember that if you’re ready to give up your spacious mansion and private pool, you may end up hearing your neighbor’s television at night.

WEEKLY GIVEAWAY 🎰 

Together With Closing Packs

To end each edition, we will be sending one lucky subscriber a special item!

This week’s item is an OrbitKey.

How do you win?

We are going to post a closed transaction with some high-level details and whoever can guess the right sale price, wins.

If nobody gets it right, the closest guess wins. If two people get it right (screw us right?!) we will hook you both up!

Let’s kick it off 👇️ 

Since we are on the topic of man caves; this 15,000+ sqft warehouse serves as a toy garage for one wealthy palm beach resident. Amenities include a conference room, kitchen, laundry room, media room, and 5 offices.

FIN 🤝 If you enjoyed this week's edition, don’t be selfish — share with a friend!

^{DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.}