CSRA Chicago Parking I, DST

CSRA Chicago Parking I, DST

Location: 100 East Walton Street, Chicago, Illinois 60611

NUMBER OF PARKING SPACES: 614

LOCATION: Downtown Chicago

CSRA Chicago Parking I, DST is comprised of two parking garages located in densely populated and heavily trafficked districts of downtown Chicago.

East Walton Street, Chicago, Illinois

Centrally located parking garage in the Gold Coast historic shopping and dining district less than a block off Michigan Avenue and two blocks off Lake Shore Drive

INVESTMENT HIGHLIGHTS

  • Net lease with parking operator provides stable cash flow with annual escalations
  • Parking revenues tend to remain stable during recessionary periods
  • No tenant improvement allowance required to attract a parking operator
  • No leasing commissions when entering into a lease with a parking operator
  • Typically low capital expenditure requirements in parking facilities
  • Ability to adjust rates hourly creates a potential hedge against inflation
  • No reliance on a single source of revenue – numerous monthly and transient customers
  • Population growth drives vehicle registrations, increasing demand for parking

PROPERTY DETAILS

The parking facilities are in close proximity to popular tourist destinations located within well-established Chicago sub markets with high barriers to entry for parking competitors.

STRUCTURE: Net lease

RENT ESCALATIONS: 3.5% annual rent increases

EAST WALTON STREET GARAGE

  • Centrally located parking garage in the Gold Coast historic shopping and dining district less than a block off Michigan Avenue and two blocks off Lake Shore Drive
  • Directly across from Bloomingdale’s, steps away from fashion retailers and restaurants
  • Seven-story valet parking garage is part of a mixed-use development containing retail and office space, and 31 floors of individually owned condominiums
  • Opportunities to own parking facilities in this location rarely come to market
  • Buddy’s Parking has agreements in place with local valet stands at restaurants to drive occupancy
  • The Illinois Department of Transportation reports heavy traffic, with an average daily count of 37,900 passenger vehicles along North Michigan Avenue

NORTH HALSTED STREET GARAGE

Sanderling is a full-service provider of dialysis and renal telemedicine that develops and operates dialysis clinics. Sanderling is owned by 23 board-certified nephrologists. The company was founded in 2012 by Dr. Jerome Tannenbaum, who has more than 30 years of experience starting and growing dialysis clinics. Dr. Tannenbaum founded three firms that grew and were sold to the largest dialysis providers in the United States: REN Corp. which was sold to Gambro Healthcare, National Nephrology Associates, which was sold to Renal Care Group, and DSI Renal which was sold to Fresenium Medical Care, the largest dialysis provider in the world.

Sanderling is focused on bringing high quality dialysis and nephrology services to rural communities. Many patients who live in rural communities lack convenient access to a dialysis clinic or a nephrologist (kidney specialist). The company establishes close working relationships with the local hospital and primary care providers to improve the continuity of care for patients who require dialysis.

ABOUT CAPITAL SQUARE

  • Located in Chicago’s vibrant West Loop neighborhood, near multiple condo, hotel and office development projects
  • Part of a 38-story mixed use development known as Skybridge creates built in demand from condo owners
  • With limited indoor parking options in the West Loop, Skybridge benefits by having two floors of covered parking
  • Whole Foods currently leases the ground floor and is expected to open its doors in 2015. Whole Foods only has 88 below ground parking spaces; likely to require additional parking
  • The Illinois Department of Transportation reports heavy traffic – average daily count of 21,000 passenger vehicles along North Halsted Street

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