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Garage condos take off near Charleston airport
By Lindsay Street
Staff Writer
The mantra in real estate has always been location, location, location. That is still the case with Colorado-based Airport Garages Inc.’s garage condominium project to be built just minutes from the Charleston International Airport.
The company is targeting business leaders and the luxury traveler, as well as investors, as customers of its 210-unit private garage complex near Interstate 526. It is scheduled to open in the first quarter of 2008.
The parcel of land that will house the storage units is comprised of pieces from three separate properties and is under contract for an estimated $1.5 million. The 4.3 acres are expected to close in mid-September.
The facility will offer units ranging in size from a 12-by-24-foot unit that will house a single car to a 18-by-50 unit that can hold RVs, boats or several cars. Prices range from $39,000 to $109,000.
Although it is not yet under construction, the Charleston location currently is taking reservations.
The first Airport Garage location opened near Vail, Colo., in 2005. The company has two other facilities located in Steamboat Springs, Colo., and Salt Lake City. By 2008, Airport Garages plans to open three new locations in Charleston; Telluride, Colo.; and Savannah, Ga.
The Charleston units will be built prior to the Savannah location.
Each Airport Garage unit is climate controlled and enclosed, keeping the owner’s vehicles protected from the elements. Owners will be shuttled in a luxury vehicle to and from the owners’ clubhouse. The clubhouse will include plasma screen TVs, leather furniture, wireless Internet access and beverages.
One of the big draws for the company in the Charleston area was the proximity to Kiawah and Seabrook islands, said Scott Rotermund, investing partner of Airport Garages. The island regions represent “one of the target markets” for Airport Garages. The business community presence was another big perk, he added.
Airport Garages has four target markets in Charleston: resort homeowners, business
travelers, investors and people interested in buying, instead of renting, storage space.
Much like Salt Lake City, Charleston is a different type of market compared to tourist destinations such as Vail or Steamboat Springs. Charleston offers commuting business executives, Rotermund said. Although Charleston has not dredged up interest from potential frequent business travelers, Rotermund said 50% of the storage units may end up being owned by businesses.
Salt Lake City units are owned 80% by investors and owners of vacation homes. Only 20% are owned by executive commuters. But it is “early in the game” and Salt Lake City is still under construction, Rotermund said.
With storage and parking near the airport limited, Rotermund expects investment yields to be worth the initial price. The garage condominiums are deeded and could be considered another asset in an investment portfolio. The units have the ability to build equity through appreciation and amortization, Rotermund said.
Similar to the new investment trend of buying dockominiums or rackominiums, buyers purchase dock slips as part of an investment portfolio and then rent or sell them for profit.
Airport Garages has attracted many investors in previous locations, Rotermund said. In Vail, for example, one investor bought 18 and another purchased 10 units purely as an investment play, he added.
Since the garage condo concept is so new and a first in the Charleston area, it is uncertain what kind of return investors can see on their purchase, said Greg Atkinson, assistant vice president of Strategic Real Estate Advisors.
“Docks are a very limited supply. The docks have a real value,” Atkinson said. “A parking spot at an airport? I don’t know.”
In Charleston, Airport Garages began the advertising campaign in late June. Rotermund said that by mid-July, more than 25 parties had made inquiries and five had reserved spots, none of which were investors or business executives.
“They’re definitely Kiawah Island homeowners and it’s definitely their second home. I mean, it may be their fifth home, but it’s definitely an additional home,” Rotermund said.
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