Robert Knakal of Massey Knakal Realty Services represented the seller in the sale of a 105-space parking garage in Midtown East Manhattan for $11.5 million, or $469.39 per square foot.
The buyer was a Long Island parking company.
The property, located at 212 E. 47th St., contains 105 legal parking spaces, but has potential for as many as 165 spaces. The lot spans roughly 24,500 square feet.
The garage is currently being leased by Central Parking System. Its lease expires March 31, 2009, and there is no renewal option.
Address: 212 E. 47th St., New York, N.Y.
Size: 105 spaces, 24,500 square feet
2008-07-31 : Mayor Daley defends plan to boot more cars
By FRAN SPIELMAN City Hall Reporter
Chicago could make a $48 million dent in its unprecedented budget deficit by lowering the threshold for applying the Denver boot from three unpaid parking or red-light tickets to two, Mayor Daley said today, arguing that the threat of more booting beats raising taxes.
A day after the proposed booting bonanza that threatens to immobilize another 208,273 vehicles came under attack from Chicago aldermen, the mayor vehemently defended it.
At a time when city employees are taking pay cuts and unpaid furlough days to close a $400 milliion budget gap, Chicago can no longer afford to carry deadbeats-even the smallest ones, Daley said.
This is not Mayor Daleys debt, he said. This is [owed to] the people of Chicago. They dont want their taxes to go up $48 million, do they? No. Just pay your debt.
If youre struggling . . . you can go to the Department of Revenue and say, I need a payment plan.
In 2002, City Hall took in more than $8.2 million and wiped 242,000 old parking tickets off the books with a carrot-and-stick approach to scofflaws. A six-week parking ticket amnesty was followed by the establishment of a three-ticket threshold for clamping down the boot. The previous trigger was five unpaid tickets.
Now, Daley wants to lower the bar to two tickets. Daley is also proposing that the citys collection costs " which range from 7 percent on ambulance fees to 22 percent for parking tickets " be passed along to ticketed Chicagoans who refuse to pay up.
Every time you dont pay a debt, we have to send a letter. If you [still] dont pay, we send a second letter. Then, we have to send a third letter. Then, we have to send it to a lawyer, and the lawyer charges us. You spend an enormous amount . . . I dont think we should be hiring more and more lawyers, more and more collectors, Daley said.
The mayor made his remarks at a back-to-school news conference at Hirsch Metro H.S., 7740 S. Ingleside.
All but one of the half dozen aldermen in attendance said they would go along with the booting crackdown, if grudgingly.
It's gonna be a problem for us, but the mayor is right: People have to pay their debts, said Ald. George Cardenas (12th). Ald. Danny Solis (25th) said desperate times require desperate measures. Its a difficult choice. But we have, looming ahead of us, potentially a $400 million to $500 million deficit. Its something we should go after. Its a move thats dramatic enough that maybe well get some good results.
A sheepish Solis then admitted, My wife has had the boot, and its embarassing. But when you break the law, however small, youve got to pay for that, he said.
To free a booted vehicle, drivers must pay a $60 boot fee and settle all outstanding tickets in final determination. Since booted vehicles are towed after 24 hours, drivers might also face a $150 towing fee and storage that amounts to $10 a day for the first five days and $35 for every day after that.
Ald. Willie Cochran (20th) said he wont go along with piling that much on his already struggling constituents.
It's not hard to get two tickets, said Cochran. And then, even if you get on a payment plan, if you dont have the funds, youre gonna fall off that payment plan, and youre not gonna be able to get back on it. Youre gonna get towed. And then youre gonna get another ticket after being towed. And the fines and fines and fines . . .
Last year, the city of Chicago booted 58,886 vehicles. The booting rate is up slightly this year, to 29,719 through June 30, thanks to vans equipped with automated license-plate readers.
2008-07-21 : Tank Robbery GAS THEFT | Fuel-siphoning may be surging, so sales of locking caps are soaring
"Somebody just popped [the gas cap] open, stuck a hose in and siphoned it off," Kniskern said, estimating he lost as much as $70 worth of gas. "I'm presuming they just filled their own tank and drove off."
Gas siphoning, that scourge of the 1970s, may be making a comeback.
Chicago Police don't keep statistics on gas theft. Officers said they haven't seen an uptick in reports of siphoning or tank puncturing, though it may be people aren't reporting such a small theft.
Still, gas theft -- or at least the fear of it -- is causing a surge in the sale of locking gas caps.
The caps, which cost between $10 and $30, are designed to keep gas in the tank and siphon hoses out.
Stant Manufacturing, believed to be the largest U.S. producer of gas caps, said it currently is filling four times the normal order rate for the locking caps.
"Every time we think we get caught up, we get a big batch of orders in," said Chris Hoffman, Stant spokesman. "Ever since we hit the $3.50 [per gallon] mark, the demand on locking gas caps is very high."
At auto parts retailer AutoZone, locking gas cap sales are up 50 percent over the last three months, said Ray Pohlman, AutoZone spokesman. Advance Auto Parts is also seeing brisker-than-normal sales, a spokeswoman said.
"More and more people are protecting their investment," Pohlman said, noting that sales spiked when gas hit the $2, $3 and $4 per gallon milestones.
Les Kniskern parked his truck in his Lincoln Square alley space July 11 with the gas tank nearly full.
When he tried to start it the next day, he found the 20-gallon tank totally drained.
The caps aren't foolproof, but Hoffman said they can provide some low-cost peace of mind.
Kniskern serves as chief of staff to state Rep. John Fritchey (D-Chicago), who is proposing a bill to increase the penalty for gas theft.
Fritchey wants gas siphoning to be treated as a Class 4 felony, punishable by up to three years in prison. Currently, gas theft is treated as a misdemeanor, punishable by a fine or up to a year in the county jail.
Contributing: Vivian Huang
2008-07-10 : Six cameras added to sweepers to catch parking vi'CHEAPER, EASIER' | Photo would arrive in mail with ticket Motorists who block Chicago street sweepers could get nailed by surveillance cameras that trigger $50 tickets -- and city snow plows could be next. As far as Mayor Daley is concerned, there's no end to Chicago's head-first plunge into Big Brother technology. Red light cameras have reduced accidents and raked in millions of dollars at 69 Chicago intersections, with 60 more planned this year and 220 more by 2012. It only makes sense to put video surveillance to work on street sweepers and snow plows to replace the primitive system Chicago has used for decades. "Just think. You have someone put up the [temporary] sign and take the sign down. That's No. 1. Then, you have to have someone go out there to [write] the ticket. Or, you don't clean most of the street because you're going around" illegally parked cars, Daley said. With surveillance cameras, "It's cheaper. It's easier. ... They'll be able to take a picture and, automatically, send a ticket to 'em." Streets and Sanitation Commissioner Mike Picardi added, "We're not out there trying to generate revenue. We're trying to clean curb lanes. If you live on a block, nobody moves their car and the sweeper goes by that day, that curb lane is gonna be dirty for the next two months until we get back there again." The Chicago Sun-Times reported earlier this year that surveillance cameras would be installed on Chicago street sweepers, thanks to a $7.2 mullion contract awarded to Affiliated Computer Services Inc.-State and Local Solutions. At Wednesday's City Council meeting, Daley introduced an ordinance that would kick off the sweeper experiment slowly to work out the kinks. Cameras would be installed on six of the city's 60 sweepers -- one in each of the five sanitation districts and one on a back-up sweeper. Every sweeper would be equipped with a pair of cameras -- one to capture the image of the "illegally parked vehicle and its surroundings," the other to take a clear picture of the license plate. Video evidence would be forwarded to the city's Department of Revenue daily, then mailed to motorists along with the $50 tickets. In 2006, the city issued 345,206 sweeper tickets. Aldermen have argued that it's unfair for the city to install sweeper cameras when the "No Parking" signs that warn them are predominantly made of paper and tend to blow away. Daley said his ultimate goal is to install permanent signs detailing which days are No Parking days. The only problem is the $12 million cost to do that citywide. City Hall has also tested a light affixed to permanent signs that would turn green when the sweeper goes by to signal motorists that it's okay to park there again. But, the technology didn't work. Also at Wednesday's Council meeting, Daley introduced an intergovernmental agreement with the CTA that would pave the way for new technology that would allow CTA buses along Western Avenue to turn lights green automatically at ten intersections. The $652,743 pilot program to speed bus travel is being financed by an RTA grant. Yet another Daley ordinance would put ex-offenders to work repairing plastic refuse carts. In the past, damaged carts were either cannibalized for parts or sold for scrap. Now that soaring oil prices have made replacing plastic carts more costly, it's more cost-effective to repair them, Picardi said.2008-07-07 : Renting out parking space helps cut costs
LINCOLN PARK | She also gave up cable and Netflix July 7, 2008 BY FRANCINE KNOWLES fknowles@suntimes.com For Kathy Schubert, parking her car on the street is helping her deal with tougher economic times. "I gave up my garage space, and I'm getting $200 a month from somebody who has an expensive car," said 66-year-old Schubert, who resides in the Lincoln Park/Sheridan neighborhood. » Click to enlarge image Kathy Schubert is making it through tough times by renting out her garage and parking her own car on the street. (Jean Lachat/Sun-Times) RELATED STORIES Vegetarian mom saves money on food She saves $35,000 a year Coupon maven draws bargain-hunters E-mail us your saving money stories "I'm parking my 19-year-old car on the street. I have to be careful not to get ticketed, but my Alderman sent out a notice of street cleaning days, and I have them marked on my calendar." Schubert owns and runs Kangaroo Connection, a store that sells Australian souvenirs, including items shaped like or decorated with a kangaroo or koala as well as chinchilla and ferret collectibles. "Business has been terrible," she said. "I guess nobody has extra income to spend on silly things like kangaroos and koalas, even at 50 percent off." She gets the bulk of her income from renting out a building she owns that houses two stores and four apartments. "My expenses are going up but my ability to make more is not," she said. To help make ends meet she gave up Netflix and instead borrows movies from the Chicago Public Library. She also dropped cable. "It keeps going up and up," she said. "No matter how many offers came in the mail for new people to get a bargain, mine went up." She said she doesn't watch much television anyway. "I read books in the library," she said. "They're free. You go there once a month and talk about the chosen book and they even give you free refreshments." She enjoys going to the movies and the theater, but has found ways to avoid paying. "I volunteer for ushering through Saints of Chicago, so I don't pay for theater," she said. The Saints is a non-profit made up of volunteers for the performing arts. "The amount of money it costs to join the Saints is what you could spend on one ticket at Orchestra Hall," she said, adding she sees a play about once a week. Schubert also joined Cinema/Chicago, parent of the Chicago International Film Festival. "For 50, 60 bucks a year, I get free (movie) tickets right and left," she said. Tougher economic times call for creativity, she added. "I donated to Sen. Obama's campaign by having a staff member stay in my house instead of sending cash, which I don't have," she said. Schubert largely relies on her bike for transportation, cycling 7,000 miles a year -- "so I don't need a gym membership." "My car of 19 years has only 70,000 miles on it," she said of her Plymouth Voyager. "I'm getting really close to giving up that automobile," she added.2008-07-01 : Parkingbroker.com goes live
Long-awaited parking stall marketing site is launched after months of discussion After much anticipation, Parkingbroker.com is finally making its long-awaited debut! Years after gaining experience in selling over 300 parking stalls at Field Harbor Parking in Chicago, Josh Singer and his company, Web312, have launched parkingbroker.com. Parkingbroker is a new website designed to aid interested parties in the buying and selling of parking stalls. "I am very excited to get Parking Broker off the ground and into motion," Singer commented. "With a vast amount of parking websites currently available on the web, Parkingbroker.com will stand out significantly from the rest, helping to expand the online parking marketplace. I'm glad to be a part of such an exciting venture." Stay tuned for more updates as Parkingbroker.com evolves into a larger, interactive parking community. 2008-05-05 : Parking survey reveals costly Chicago rates
Windy City still more affordable than some in U.S. last year Jon Hilkevitch Getting Around 9:15 PM CDT, May 4, 2008 Drivers parking for only an hour at private garages in downtown Chicago can expect to shell out $15.70 on average, and almost $30 for a full day, a new parking-rate survey found. For commuters headed downtown who, for whatever reason, don't use mass transit, beating the crowd to parking spaces is clearly the best way to save money. Early-bird parking rates for a full day average about $13.50 at surface lots downtown and a little more than $17 at parking garages, according to the survey conducted by Next Parking. The Northbrook-based company invests in parking facilities and shopping centers and offers consulting services on parking. Monthly parking rates average $239 at surface lots and about $310.50 in garages at some 180 parking facilities surveyed in March. But those are all averages. Some early-bird rates exceed $25 at a few locations, and all-day rates top off at about $45, the survey found. Parking rates are expected to climb even higher this summer when a 1 percentage point increase in the Cook County sales tax takes effect. Next Parking predicts the hike could spur a $20 increase on average in monthly parking rates downtown. A 0.25 percentage point sales tax increase was implemented in April as part of a boost in the state subsidy to the Chicago Transit Authority, Metra and Pace. In addition, under plans announced by Mayor Richard Daley last week, Chicago may impose higher parking taxes at private garages and lots in the central business district as well as increase parking-meter rates during rush hour. The idea is to attract more people to the CTA and discourage drivers from parking downtown. The Next Parking survey defined downtown's boundaries asChicago Avenue on the north,Harrison Street on the south, Lake Michigan on the east and Jefferson Street on the west. Downtown parking facilities owned by the Chicago Park District and the City of Chicago were not included in the study. Parking rates at those facilities have risen since the city reached a $563 million agreement in late 2006 with Morgan Stanley Investment Management and the garage management firm Laz Parking to privatize Grant Park's three Park District garages and one city garage near Millennium Park. However, rates at the Grant Park garages are generally as low or lower than the prices charged at private garages and parking lots located in or near mixed-use and residential buildings, according to a cursory survey conducted by the Tribune. For example, it costs $13 to park for up to 12 hours at the East Monroe Garage and $20 for up to 24 hours. The early-bird rate (in by 10 a.m., out by 7 p.m.) at the Millennium Park Garage is $14 weekdays. The entrances to both garages are on Columbus Drive. Paying for proximity Many drivers, particularly regular commuters to downtown, seem willing to pay extra to park close to their offices, and the parking companies take advantage of it. "We are creatures of habit," said George Cutro, vice president of market research in Chicago for Colliers International, a Boston-based real estate company. "If you are someone who parks only once in a while, you probably are more willing to walk six or eight blocks to save some money. But office workers tend to be running late. They like the consistency of parking near the office, and some of the companies provide a parking allowance," Cutro said. The Next Parking survey found that drivers, especially those parking for shorter periods, pay the highest fees in a smaller section of the downtown defined as the Loop, roughly bordered by the CTA's elevated rail structure. The maximum all-day parking rate kicks in at most Loop garages after two hours, the survey team found. Cheaper than some cities A parking study conducted last year by Colliers found Chicago rates increased about 12 percent since 2006, compared with about 4 percent for the U.S. as a whole. Yet the overall results reported by Next Parking suggest parking in downtown Chicago is a "relative value" compared with the most expensive cities" New York, Boston, San Francisco and Philadelphia"said Robert Caplin, principal of Next Parking. Still, parking prices in downtown Chicago have increased over the last two years, in part because of low office-vacancy rates that create more demand for the available parking spaces, he said. In addition, city zoning laws and lack of available land have held back the construction of parking garages downtown recently, he said. Those factors mean Caplin isn't worried that the recent spike in gasoline prices or worsening traffic in the Chicago region will hurt the parking business. "I'm more concerned about the potential for $7-a-gallon gas than I am about the current $4-a-gallon gas," Caplin said. "For a lot of reasons, people are still attached to their cars. "Also, there are limited options because of the finite number of seats on mass transit, and transit fares will inevitably go up too," he added. In 2007, parking costs increased nationwide for the fourth consecutive year, according to an analysis by Colliers.The priciest parking rates in the U.S. were in midtown Manhattan, where daily parking averaged $42 a day and a monthly parking spot averaged $630, Colliers said. It found some Manhattan monthly rates as high as $925. After Manhattan, Boston's monthly parking averaged $460, San Francisco averaged $350 and Philadelphia averaged $297, Colliers said. The cities with the least expensive average monthly parking rates were Phoenix at $35; Bakersfield, Calif., and Reno, $45; Fresno, Calif., $50; and Santa Rosa, Calif., $55. Among world-class cities in Europe and Asia,Tokyo led the pack. Daily parking in Tokyo averaged $84, followed by $64 inLondon. In the center of London, monthly parking averaged $1,198. 2007-10-08 : Parking Spaces as Investments
Written by: Melana Yanos In the game of Monopoly®, the Free Parking space isnt a property for sale. In the real world, however, investors can take advantage of parking as a form of physical property that can be bought, rented or sold like any other type of real estate. With spaces being sold for as much as $200,000 apiece in densely populated cities such as New York, parking spaces could very well be the new Park Place. More than 237 million privately and commercially owned vehicles are registered in the U.S., according to the Department of Transportation. This works out to approximately one car for every two people. It may come as no surprise that with the abundance of private transportation, parking is getting harder to find, and as demand increases, so do parking space values. An increasing number of investors are realizing this and beginning to take advantage of a growing market. Parking as a real estate investment Parking spaces can be used as a real estate investment Parking is a scarce commodity, and the ability to invest in it is now [in] the hands of the individual, Richard Delaney, vice president of Palladian Development, and former developer for the Field Harbor Parking project in Chicago, said. Demand for parking is highest in tier one cities such as New York, Chicago and San Francisco, and is increasing in tier two cities such as Nashville, Houston and Cincinnati as these cities grow and become more densely populated, Delaney said. The scarcity of parking spaces is compounded by the emergence of condominiums without parking for sale. Local governments in cities such as Seattle, Portland and San Francisco are reducing or eliminating the minimum number of parking spaces required for housing developments in an effort to lower housing prices and promote mass transit, according to a story published in The New York Times last year. With less residential parking available, it is likely that demand for condominiumized spaces, or spaces within a garage that are managed and leased like condo units, will increase. Parking spaces are a great investment, Stephen Sinclair, founder of Parkingsearch.com, said. Sinclair said he observed a substantial appreciation in parking space values during the past three years. What weve noticed in the last three years of acquiring data is that these parking spaces have been increasing in value regardless of whats going on with the real estate market, Sinclair said. Since 2005, Sinclair said he has seen a 13 to 20 percent increase in parking space values. The average parking space on the ParkingSearch.com website for the city of Chicago"thats any ZIP code that starts with 606"was $28,000 in 2005; $30,000...in 2006; and about $33,000 in 2007. A person who bought a space for $30,000 in 2005 and financed it with a loan at 80 percent LTV would make an equity investment of $6,000 with a $24,000 mortgage. Thus, for a fixed rate mortgage with 6 percent interest over a term of 15 years, the parking space buyer would have a mortgage payment of approximately $202 per month. However, lease rates for parking spaces have increased from $260 per month in 2005 to $272 per month in 2006, and to $285 per month in 2007, Sinclair said. Thus, an investor would accumulate returns of $58 to $73 per month from leasing out the spot. Furthermore, selling the parking space in 2007 for $34,000 would yield a gain of $4,000 because of the appreciation in value of the space. The overall return on the investment would total $6,552"a 109 percent return on investment. $6,000 is not much to invest, but youve turned $6,000 into $12,000 in three years, which is a pretty decent investment, Sinclair said. Each parking space has its own unique valuation in terms of its location within a city as well as its location within a parking garage. A parking garage has its own micro-economy, in the sense that the convenience of nearby elevators and lower floor parking may increase the value of a space, Sinclair said. Amenities such as heating and security can also add value. There are a number of advantages to owning a parking space: First, parking spaces require minimal maintenance; owners pay a small monthly maintenance fee and avoid much of the hassle involved in managing condos and other types of residential property. Second, in the case of parking spaces in garages, eviction is an easy process: delinquent leasers are simply locked out. Finally, parking spaces are cheap compared to housing and present a more affordable opportunity for real estate investment. It is actually a very good investment for small investors, Sinclair said. Buying and selling parking spaces is a relatively simple process and transactions can take place relatively quickly. Heating and security can add value to a parking spot investment Amenities such as heating and security can add value to a parking garage investment At Field Harbor Parking, a typical sales cycle is one to six months; as far as rentals are concerned...there is about a one-month vacancy period, Kirk Nortridge, a Property Consultants real estate agent in Illinois who specializes at Field Harbor Parking, said. A real estate agent is the best bet for investors to find a wide selection of parking spaces for sale, Nortridge said. Websites such as Parkingsearch.com make it easier for potential buyers to peruse the market. Delaney said he is involved in plans to launch a similar website, ParkingBroker.com. Finding a lender willing to finance a parking space might take some digging. However, the practice is spreading...[and] if your bank cant help you...[it] can direct you to [a lender] who can, Delaney said. Field Harbor Parking spaces, for example, were financed by the Associated Bank in Chicago, which loaned directly against the stalls as collateral. Additional responsibilities of owning a parking space typically involve obtaining a deed and property ID number, becoming a member of an owners' association, covering the property with liability insurance and paying taxes and maintenance fees. Title insurance is also highly recommended, and although legal representation in buying a space is not as important as it would be for purchasing a residential property, it still might be a good idea, Nortridge said. Parking spaces might seem like a hot new investment, but investors should also take heed of possible factors that might suppress parking space values. Parking space appreciation is contingent upon a citys growth, and if a city is not going to make it, then it is probably not a good idea to invest in parking spaces there, Delaney said. Increased efficiency in public transportation might also slow demand for parking. Additionally, investors might want to keep an eye on the future as the dawn of new high-tech garages, such as RoboPark, will allow for denser parking lots. Should new parking technology become mainstream and more cost effective, parking space appreciation rates may flatten.