Operational Riverside Boulevard Garage Portfolio Hits the Market at $65M
The U.S. arm of a foreign-based trust is looking to sell three operating parking garage condominiums at the base of five residential condo buildings that are part of the Trump Place-Riverside South development for $65 million, or $65,326 per space, Commercial Observer has learned.
The three garages, which are comprised of 228,083 square feet and 995 parking spaces, are at 80, 100-120 and 220-240 Riverside Boulevard and are leased to Icon Parking Systems in 25-year deals that extend into 2035. The current annual rent across the three parking garages is $3 million, with rent escalations every three years, according to the marketing materials. Above the garages are 1,100 condo units.
The majority of the parking spaces—475—are at 220-240 Riverside Boulevard (Trump Place 220 is at 220 Riverside Boulevard and The Heritage is at 240 Riverside Boulevard) between West 70th and West 71st Streets. There are 280 spots at The Rushmore at 80 Riverside Boulevard at West 64th Street and 240 at 100-120 Riverside Boulevard (Avery is at 100 Riverside Boulevard and Trump Place 120 is at 120 Riverside Boulevard) between West 65th and West 66th Streets. The current owner picked up the properties in 2010 for a total of $44.5 million, property records indicate.
CO reported in late 2014 that parking garages are fading as they get snapped up by developers looking to replace them with fancy condos.
“There have been reports over the years, the loss of parking spaces,” said David Schechtman of Meridian Investment Sales. He is marketing the portfolio along with Abie Kassin, Adam Sprung and Lipa Lieberman. “All of surface parking spaces are going the way of the dodo bird. There’s a paucity of parking. This is a place where you can buy a chunk of it.”
And the price the trust is seeking is “realistic” at $65,326 per space, Schechtman said, as parking spaces can go for as much as $175,000 per spot in New York City. The portfolio does not offer any development opportunity as the spots are at grade and several levels below.
“The trust has moved into other asset classes throughout the U.S. and is moving capital,” Schechtman said.