California Street Parking, a 25-parking space garage located at 1627 California Street in downtown Denver, has sold for $10.65 million. The sale reaffirms the demand for parking at a time when self-driving cars are projected to reduce the need for parking in coming years.
Built in 1998, the 9-story garage is one of the few standalone, purpose-built parking garages located in the core of downtown. The garage serves parking for daily and monthly users in addition to a nearby condo development. The unnamed, private seller was the original developer and was exclusively represented by Colliers International brokers Craig Stack and Bill Morkes. The buyer, MMDC Commercial Real Estate of Portland, was self-represented, and was already experienced with the Denver parking market, previously acquiring the Stout Street Parking Garage at 1735 Stout Street in 2008.
“We’ve read articles in recent years that there will be self-driving cars that will eliminate the need for parking. The overwhelming
interest from buyers for this property clearly demonstrate that many investors don’t see that risk,” stated Mr. Stack “In fact we’re
seeing new multifamily and commercial development in downtown being built with significantly lower parking requirements than in the past, resulting in pent up demand for parking spaces.”
“Once abundant surface parking lots are disappearing rapidly in the wake of extensive urban development,” add Mr. Morkes “Many investors that offered on the property think parking garages offer long-term durability and cash flow with less downside than other assets.
Photos courtesy of Colliers International