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San Jose is selling a 330-spot parking garage for $3.6M to an affiliate of Las Vegas-based JNL Parking. The sale is part of a statewide plan to liquidate the holdings of city-level redevelopment agencies.
The winning bid was much higher than the city’s own bid (which came in third at $1.5M), according to the Silicon Valley Business Journal. The terms of the sale require the garage be maintained as public parking.
The $3.6M was less than a recent appraisal by Valbridge Property Advisors valuing the property at $13M. However, a prior appraisal done by Carnegi + Partners valued the garage at only $850k, saying the property was sparsely occupied and losing around $84k a year.
As San Jose develops further, parking space could rise in price due to demand. City officials are concerned the loss of the 330 spots could cause the nearby Safeway to leave, as the retailer had negotiated a deal allowing shoppers two free hours parking. That deal will likely end under JNL’s ownership. [SVBJ]
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