Why the Ultra-Rich Are Spending Millions To Live in a New York Parking Garage

New York City skyline at sunset with Brooklyn Bridge and Lower Manhattan

A nearly 100-year-old run-down parking garage in New York’s West Village is set to become one of the city’s most exclusive condo buildings, commanding unit prices in the tens of millions.

Bought by developer Alf Naman from the West Village Houses co-operative for around $64 million in 2022, the building at 738 Greenwich Street (also known as 125 Perry Street) is expected to make its owner about $245 million, according to The Real Deal.

Explore: 6 Genius Things All Wealthy People Do With Their Money

The seven home building will comprise of two penthouses, two townhouse-style residences and three loft-style homes, according to The Wall Street Journal. Three units have already been sold, including a penthouse for $57.5 million and two other units bought for $32 million and $22.5 million apiece. The price of the remaining penthouse is still unconfirmed.

The listing agent Jim St. André told the Wall Street Journal that the amenities will include a doorman, gym, sports court and limited number of parking spaces. The top floors will have marketable views of the Empire State Building.

Despite its outward appearance, this parking garage will be anything but utilitarian on the inside. So, why are the wealthy spending millions to live in a New York parking garage? Here are a few reasons.

Sponsored: Protect Your Wealth With A Gold IRA. Take advantage of the timeless appeal of gold in a Gold IRA recommended by Sean Hannity.

Optimal Privacy

When price is no object, ultra-wealthy buyers often opt for quiet luxury and optimal privacy. By keeping the original façade, the parking garage can blend inconspicuously into the neighborhood, making it an appealing living option for discerning prospective buyers.

“People in show business…calculate whether or not they can live in a certain building by how long it takes for the paparazzi to find them once they leave,” St. André said.

Industrial Chic

Instead of tearing down the building to erect a skyscraper, the garage will retain its current industrial frontage as the rear is demolished to build units. Buyers looking for straight lines and quiet details will be rewarded with an understated refinement in the heart of the fashionable Village neighborhood. The garage’s steel framed windows and soaring 14-foot ceilings set it apart from typical parking structures.

“Generally, parking garages are so utilitarian in nature,” Naman said, according to the Wall Street Journal. “They don’t have the scale or the kind of grandness that this had. It’s a very simplistic, but very refined building.”

Exclusive Living

Comparing the selling process to that of 220 Central Park South, “where a stealth marketing strategy turned the building into something akin to a private country club,” the Wall Street Journal noted that there has been no formal marketing or online listings for the West Village project.

“It’s going to sell out long before people even know what’s happening,” said Robert Dankner, a local agent. “People always want to be in a club they can’t get into, and this has been one of those clubs.”

The West Village has become a hotspot for those hoping to convert strings of adjacent townhomes into luxury compounds. According to a Wall Street Journal insider, Chipotle founder Steve Ells and art collector Edward Minskoff have expressed interest in the garage over the years. Work is set to start this month on the West Village parking garage transformation, with construction ending in 2026.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Why the Ultra-Rich Are Spending Millions To Live in a New York Parking Garage