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A Downtown LA parking lot spanning two blocks along the 110 Freeway in Pico-Union has traded hands, and the new owners have plans to build space for even more cars on the property.
San Diego-based Wilshire Quinn Capital provided a $10M bridge loan via the private lending fund Wilshire Quinn Income Fund for the purchase of the 68K SF parking lot with 175 spaces, the firm announced Friday. L.A. Biz first reported the news.
Wilshire Quinn declined to disclose the buyer’s identity and the sale price, though Wilshire Quinn Capital CEO and Chief Investment Officer Christopher Garcia told Bisnow that the property transacted for significantly more than the amount of the loan. Public records don't yet reflect the sale.
The property between 11th and 12th streets along Albany Street is just west of the 110 Freeway and less than a half-mile from the Staples Center and the Los Angeles Convention Center. Online reviews for the parking lot indicate that it was a lower-priced alternative parking spot for attendees of both of those venues.
The new owner wants to file plans with the city to build a large parking structure on the property — a vote of confidence that events at the Staples Center and the Convention Center will once again be a huge draw to the area and its parking lots.
The convention center had 17 of the 20 citywide convention events it had planned for 2020 canceled. For 2021 so far, 14 of the 20 previously booked citywide convention events have been canceled.
Parking lots in dense metros have long been a strong asset class, but with the onset of the coronavirus pandemic and the ensuing shift to remote work, their revenues have decreased, Garcia said in a statement. Commercial parking companies have seen revenues drop 70% to 90% since the start of the pandemic, Bisnow reported in December, citing data from the International Parking & Mobility Institute.
The revenue decline has led to traditional lenders not offering loans to these properties, Garcia said.
“We feel that lending on prime parking assets, at conservative loan-to-value ratios, will continue to result in solid returns for our Fund,” Garcia said.
The parking lot was operated by Shamrock Parking and owned by an LLC connected to Classic Parking. The LLC has owned the property since 2008, when it paid $6M for it. The company didn't immediately respond to a request for comment.
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