Center City may be the hub of greater Philadelphia’s public transit network, but there’s still money to be made off drivers who need to park.
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An 801-space garage at 1815 Cherry St. in Logan Square is expected to sell for $55M or more, the Philadelphia Business Journal reported. That comes out to more than $68K per spot.
Chicago-based owner InterPark is selling the property to “recycle capital,” CBRE Executive Vice President Doug Rodio, the listing agent, told the PBJ.
“It’s actually outperforming where it was prepandemic and it’s part of the reason why InterPark has considered offering this for sale,” he said.
The roughly 230K SF parking deck is located between three high-profile office properties: One Logan Square, Two Logan Square and the Comcast Technology Center. It also has contracts with the Four Seasons and Logan hotels.
Hospitality accounts for 21% of the garage’s demand, while office workers make up another 12%, according to the PBJ.
Parking facilities are often a target for multifamily developers. Eclipse Development in March purchased a surface lot at 26 S. 21st St. from Parkway Corp. with plans to build a 12-story, 190-unit apartment building there.
But Center City lots could be in even higher demand if the Southeastern Pennsylvania Transit Authority’s service cuts and rate increases go into effect as planned on Aug. 24.
The agency’s $213M budget deficit is in the spotlight amid a partisan standoff in Harrisburg, where a majority in the Republican-dominated state Senate is opposed to increasing the percentage of the sales tax allocated to public transit systems across the commonwealth.
Parking lots can be a controversial topic in Philly. The Children’s Hospital of Philadelphia fielded a litany of angry comments at a May public meeting about a new employee parking deck it plans to build in Grays Ferry.
The project is by-right, so it appears set to move forward, but activists are still pushing the hospital to reconsider.
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