Jamie Anthony, Principal at Brooklyn-based real estate development firm Lonicera Partners, is trying to fix a problem he admits to being partially responsible for: the lack of parking in New York City.
New York City is known for its cutthroat housing market but less attention is given to the even more brutal world parking in NYC. As development increases, fewer parking spots exist. Not only do developments fill neighborhoods with more people and, therefore, more demand for parking, it often reduces parking by developing surface lots that had previously been used for parking. It’s the classic problem of increasing demand and decreasing supply.
Even though a market research report from Deutsche Bank found that owning a car in NYC is more expensive than anywhere else in the country ($3.10 per mile in Manhattan versus an average of $0.90 per mile in metro areas) and that using Uber or Lyft is a much less expensive option, many people prefer to own their own car for the convenience, flexibility and longer distance trips.
But if you own a car in NYC, you have to park it. According to Jonathan Miller, President/CEO of the real estate appraisal company Miller Samuel, for 2016, the average price for a Manhattan co-op/condo parking space is $191,025 (in a garage) and $82,678 (in a lot). But Miller admits that the data on parking is complicated because, “much of the headline stuff has been referring to super-luxe new development which are usually combined with the purchase price and are going for much more, i.e. $250k to $400k. The problem is that many of the sales are attached to the unit so the value has to be extracted.” Despite the data issues, it’s clear that NYC parking is pricey.
Different companies have different ways to deal with parking in the city. Aside from the ever shrinking number of traditional garage spaces available, website and app developers offer maps that show drivers where they can find available spaces. Some companies try to negate parking altogether by sending valets to wait in your car while you do your errands (Drop Car). But Lonicera Partners has a solution that they say not only adds parking but adds value.
Anthony recently opened The Parking Club, a “valet parking condominium,” to make up for some of those lost spaces in the Cobble Hill neighborhood of Brooklyn. Not only is the Parking Club an option for local residents, the valet service will drop off or pick up cars from a large portion of Manhattan so it makes it available to people all over the city.
After years of dealing with the frustration of owning his own car in New York City, Anthony realized that parking was not the only “headache” associated with car ownership in the city, “the idea of getting your oil changed in the city, your car washed, and filling it up were such pains. I would go across the Holland Tunnel to New Jersey to fill up my car. And the inspections every year for state inspection were awful.” Anthony was not just trying to provide much needed parking with the Parking Club, he was trying to figure out a way to make owning a car in the city less of a hassle. So he decided to open the only “white-glove parking garage” with valet services in NYC.
...the valet service will drop off or pick up cars from a large portion of Manhattan so it makes it available to people all over the city.
The Parking Club partnered with Luxe, an independent white-glove valet service that offers daily and monthly parking (and more) but no ownership option. For the first two years after purchasing the spot at the Parking Club, the $185,000-$225,000 parking spot price tag includes the spot plus many Luxe services: car delivery and pick up anywhere in the service area, a monthly and annual maintenance and inspection program, oil changes tracked, tire pressure tested, washer fluid top off, battery check, car washes and four fuel fill ups per month, electric car charging, a member lounge with coffee and your car is always delivered to you with a fresh bottle of water in it.
After the first two years, Parking Club owners have to pay a fee to renew the Luxe contract. Without that additional service, the owner still owns the spot and has access to the lounge but the other services, such as the valet and maintenance options, are not included.
The Parking Club isn’t the only “parking condominium” in Brooklyn, there’s also the Union Street condominium garage but it does not come with the Luxe service. Union Street started selling spots for $62,500 in 2013 but the last space to sell went for $265,000. Currently, another is asking $300,000.
Lindsay Barton Barrett is not only a broker at Compass representing sales at The Parking Club she also owns a spot herself. “I own a townhouse in Cobble Hill and parking is so awful in this neighborhood. But one of the main reasons I bought the space is that I’m very confident when I go to sell it in 5 to 15 years, it will appreciate at a significantly much higher rate than prime interest rate or inflation.”
Barrett explains that fewer buildings are building parking options for their owners and even, when they do, they don’t build as many spots as there are units in the building.
Anthony says, “We have seen clear indicators for people who own homes that being able to attach a deeded parking space to their home increases the value of their home a lot more than the cost of parking itself. The Parking Club increases the value of their home.”
Since sales launched in October, the Parking Club has sold, or is in under contract, 20 of the 85 existing units.
Lindsay Barton Barrett is not only a broker at Compass representing sales at The Parking Club she also owns a spot herself. “I own a townhouse in Cobble Hill and parking is so awful in this neighborhood. But one of the main reasons I bought the space is that I’m very confident when I go to sell it in 5 to 15 years, it will appreciate at a significantly much higher rate than prime interest rate or inflation.”
Barrett explains that fewer buildings are building parking options for their owners and even, when they do, they don’t build as many spots as there are units in the building.
Anthony says, “We have seen clear indicators for people who own homes that being able to attach a deeded parking space to their home increases the value of their home a lot more than the cost of parking itself. The Parking Club increases the value of their home.”
Since sales launched in October, the Parking Club has sold, or is in under contract, 20 of the 85 existing units.
Contributing Writer
Michelle Sinclair Colman
Michelle writes children's books and also writes articles about architecture, design and real estate. Those two passions came together in Michelle's first children's book, "Urban Babies Wear Black." Michelle has a Master's degree in Sociology from the University of Minnesota and a Master's degree in the Cities Program from the London School of Economics.
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