Does adding parking benefit the developer or not? It depends. The end point owner of the property, such as individual owners of condo units, will benefit from having more parking. If the developer maintains ownership of the property, or hopes to get the maximum price from the condo sale, then building the maximum amount of parking feasible might be economically beneficial. If the property is an apartment complex where the end user is not the owner, the added expense of the parking facility could raise the rent of the apartments above market rate. There would be little or no benefit to the landlord unless he/she were able to charge for the parking spaces.
Which makes me wonder -- will resident (and retail) parking at the Wizer Block apartments be free or will renters have to pay extra? If it is the latter, more cars than expected may wind up on city streets. Who should pay for the parking generated by a business (apartments are a business)? If cars park on city streets, citizens pay the cost. If parking garages are built, who pays for the borrowing costs, and who benefits? Shouldn't each business and housing project provide adequate parking for its use?
Buy Condo, Then Add Parking Spot for $1 Million
New York Times, September 9, 2014 By Michelle Higgins
What will $1 million buy in New York City? A diamond-encrusted Cartier men’s watch. A small fleet of 2014 Bentley Continentals. Or maybe your very own parking spot in SoHo.
A new development, 42 Crosby Street, is pushing the limits of New York City real estate to new heights with 10 underground parking spots that will cost more per square foot than the apartments being sold upstairs.
The million-dollar parking spots will be offered on a first-come-first-served basis to buyers at the 10-unit luxury apartment building being developed by Atlas Capital Group at Broome and Crosby Streets, itself the former site of a parking lot. At $250,000 a tire, the parking spaces in the underground garage cost more than four times the national median sales price for a home, which is $217,800, according to Zillow.
So instead of a 5,000-square-foot house with a wine cellar in Dallas or a 3,500-square-foot home with a sauna in Seattle, one could choose 150 square feet in the basement of 42 Crosby, a condominium designed by the architect Annabelle Selldorf.
The parking spots, some of which will be a generous 200 square feet, will run $5,000 to
$6,666 a square foot, whereas the nine three-bedroom units upstairs will cost between
$8.70 million, or about $3,170 a square foot, and $10.45 million, around $3,140 a square
foot. Monthly common charges for operational expenses and taxes for the three-bedrooms will run as high as $8,880 ($18,360 for the $25 million duplex penthouse). But the parking spots, which also provide a bit of storage space and a charging station, if not views, will not rack up additional monthly charges.
To build the 10 spots, the developer had to get a special permit from the city, which typically limits the number of parking spaces in new buildings to no more than 35 percent of the units.
Beth Fisher, a senior managing director of Corcoran Sunshine, which is marketing 56 Leonard, said: “The No. 1 amenity is parking. In the luxury market, parking is really one of the key, key features that distinguish one development from another.”