The value of parking garages, particularly in downtown cores, seems to be skyrocketing. 201 Madison in Chicago’s loop, is on the block for upwards of $120,000,000, That’s over $102,000 a space. The garage is 10 years old and was bought by a consortium including John Hammerschlag, for $52,000,000 five years ago. John told Crain’s Chicago Business that his group is in no hurry to sell.
This facility has value — its pay on foot, has some long term tenants on the ground floor, and can be expanded another three stories with parking or commercial/condos. I think even at the the $120 million price its a good deal for long term investment. Central Chicago parking facilities fill daily during the week, and there just isn’t a lot of dirt left in the area for more garages.
JVH
