ChicagoDowntown / Loop

235 Van Buren parking sells out at auction

by Joe Zekas on 6/13/14

When 235 Van Buren completed the sellout of its 714 condo units earlier this year, 63 parking spaces remained unsold in the 11-story, 570-space parking garage.

All 63 spaces were sold, primarily to individual buyers, at an auction held on June 5. The selling prices were reportedly in the low- to mid-$20s, well below the original asking prices.

Monthly assessments on a parking space at 235 Van Buren were $51 a month and 2012 real estate taxes were approximately $60 a month. Spaces in the garage were renting for $250 a month, but garage parking near the building typically fetches upwards of $350 in monthly rents.

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Related posts:

  1. CMK sells out 235 Van Buren, parking still available

{ 1 comment… read it below or add one }

the urban politician June 14, 2014 at 3:40 PM

So considering no maintenance expense, the expense is $111 per spot.

If you get $250 per spot, you’re talking $139 income per month. Times 12 months = $1668 per year. Assume vacancy around 10% of the time, that is around $1500 per year. Divided by a purchase price of $20k, that’s a 7.5% cap rate. Not bad for an extremely low maintenance investment.

Having said that, I think $250 is a bit optimistic. My spot has historically rented for $150 to $200 per month, which significantly lowers the income. I wouldn’t have paid $20k for a parking spot.

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