By John Walker
Special to Inside
Whether for a convenience or for an investment, people are readily parting with money for parking spaces in the 200-space first phase of Field Harbor Parking, the condominium parking development at 400 E. Randolph St. in Chicago's Near East Side neighborhood, just east of the Loop.
Field Harbor Parking, LLC, a Chicago-based investment group, recently launched the conversion of 400 parking spaces to condominium ownership in a garage at 165 Field Harbor Drive.
Marketing of the 200-space first phase of Field Harbor Parking has gotten off to a roaring start with half the spaces already sold at prices ranging from $22,500 to $31,500, said John Kretchmar, of RE/MAX Alliance Lakefront, exclusive sales and marketing agent for the garage spaces.
Kretchmar is a pioneer in condominium parking, having converted with more than 300 spaces to date.
The Field Harbor Parking LLC partnership is represented by Chicago developer Mark Goodman & Associates, Inc. Dick Delaney, executive vice president of the firm, has worked closely with Kretchmar to upgrade the garage and help market the spaces to users and investors.
"We have had so many unique situations—buyers purchasing a space for a myriad of reasons," said Kretchmar.
"Some people are buying because they live in the building, others purchase for investment and some buy because they commute to work," he said.
The spaces are in a two-story parking garage built on air rights under the Outer Drive East Condominium—a premier 944-unit high-rise condominium development at 400 E. Randolph St.—which overlooks Millennium Park on Randolph St. and the Outer Drive.
Bernard Pump, who owns a large public accounting firm with offices in the Prudential Building, purchased two parking spots at Field Harbor Parking—one for an investment and one for himself.
"I live in Lake View so my commute is only about 20 minutes, but parking can be an issue near the Prudential Building," Pump said. "I think in the Prudential Building there is a waiting list to get a parking space that rents for about $350 a month. To get a spot there is very expensive."
Pump noted that the parking spaces are wider than usual at Field Harbor Parking. "I like that. You need to have that extra space around the car so when you get in and out you don't get dings in the car doors," he said.
Pump also collects cars. He has four Mercedes and a Jaguar—a couple of which are vintage. He has various garage spots all over town for these cars.
"Right now I use one of the spaces for myself. But I can see later down the line if we move the office in about a year, I would most certainly use the spot for one of my other cars," Pump said. "I have a tenant already for my other space. He parks right next to me."
Curt Poutsch bought his space for $22,500 and paid cash. He has lived in a nearby condominium for six years.
"I closed on the space in the first week of December just before the snow," said Poutsch. "I just appreciate having a heated garage in downtown Chicago. It is so convenient."
Poutsch works for the Illinois Department of Commerce and Economic Development as an engineer.
"I work at 100 W. Randolph—just five blocks away," he said. "I still use public transportation during the week, but it is nice to have the option to have a car to go out or travel a little." Ever since Poutsch moved to downtown Chicago, he's had frequent visitors and they always have a rental car, so the parking space is useful for that, he said.
"I know of other, unheated spots in the area that can be as much as $280 a month. I also saw an article in the paper about parking now selling for $40,000 in the West Loop. In time this concept will become quite popular," Poutsch added.
Another fan is real estate broker Joe Summerville of RE/MAX Alliance Lincoln Park, who purchased a parking space as an investment.
"I have already rented it—so now I have monthly income," said Summerville. "It really is a good investment, kind of like a certificate of deposit. I purchased the space as part of a pension fund or benefit plan through my corporation.
"It creates an annuity and I have young children, so it is a good investment vehicle in lieu of the stock market, which you can't control. It is an appreciating asset that you can depreciate as a tax deduction, and you get monthly income," he said.
"Each space at Field Harbor Parking is a deeded residential condominium parking space in a heated indoor garage," said Kretchmar, who originally purchased the air rights site from Illinois Central Industries in the late 1980s and completed the garage in 1989.
If you live nearby or work nearby, Kretchmar considers it a good investment for you. "With monthly parking fees approaching $300 a month in downtown Chicago, if you own a condominium nearby, are a corporate executive who rents office space nearby, or own a yacht moored at Monroe Street Harbor, it makes sense to invest in a parking space at Field Harbor Parking," Kretchmar said.
Current monthly garage rents in the area range from $150 a month at Outer Drive East and Harbor Point to $365 a month at the Aon Center. Monthly parking at the East Monroe Garage, 350 E. Monroe, costs $200. At the Grant Park North, 25 N. Michigan Ave., garage parking is $284 a month.
For-sale parking spaces in at Near East Side condominium buildings currently range in value from $35,000 to $55,000, Kretchmar said.
"Metered parking in the immediate area has been greatly diminished because the city removed many meters on the lower level of Randolph Street, Columbus Drive and Wacker Drive for security reasons after 9/11," Delaney said. "Hourly parkers pay 25 cents per five minutes at the remaining meters. That's $3 an hour, or $24 for an eight-hour day."
The best part of purchasing a deeded residential parking space at Field Harbor Parking may be the tax advantages, Kretchmar said.
Based on an average parking space price of $25,000 with a 20 percent down payment on a 7.5 percent loan, owners will pay a monthly payment of $265 for principal, interest, real estate takes and monthly maintenance.
"So, today's ownership cost for a space at Field Harbor Parking is about the same as current monthly garage parking downtown," Kretchmar said. "However, annual tax benefits, plus depreciation and maintenance deductions, will reduce the actual net monthly payment greatly."
Field Harbor Parking will have its own condominium association. All assessments for maintenance will be paid to the association.
Kretchmar said Field Harbor Parking LLC has completed extensive rehab and upgrading of the garage, including new signage, a power wash of the entire facility, floor painting, interior lighting, and new access control, security and video surveillance equipment. The car wash, office and bathroom facilities also have been refurbished.
For more information, call Paulette Rodriguez at (312) 856-1900. |
