235 Van Buren parking sells out at auction

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.

COMMENTS

WORDPRESS: 1
  • the urban politician 2 years

    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.