NYC parking spots selling for $1 million

Ok, I get clients in my office every day and I often hear form many of them that construction costs in Santa Fe are so high compared to …… where they are from. Well, that maybe true that construction costs have not really dropped, even in the challenging economy. When I read this article in the San Francisco Gate, which I still read daily online, I had to share this with my readers. Construction costs for a quality home in the west side of Santa Fe starts around $250 a square foot on up to $400 square foot for high end luxury estates. This maybe high for some people, but it is so much higher in New York City… ah life in the city different! so glad to be living here!

From SFGate.com

$1 million may be the median price for a home in San Francisco, but in one New York City downtown development all it will get you is a place to put your car. A condo developer in SoHo is offering 10 underground parking spots for $1 million each, according to a recent article in the New York Times.

The underground spots will be in the basement of 42 Crosby, a condominium building currently under construction. Although the least-expensive condo in the building itself is being offered at $8.7 million (or $3,140 a square foot), the 150- to 200-square-foot parking spaces (which also have room for some storage and include a charging station) are about $6,000 per square foot. In fact, the exceptional price tag doesn’t even get the buyer ownership of the spot, just a 99-year license. The licensed, rather than deeded, parking spot will need to be sold whenever the condo owner moves out of the building.

According to the Times, a TriBeCa development had no problem selling its 28 parking spots at $500K a piece last year. All but three of the spots sold in a matter of months. The developer is holding onto the three remaining spots for the as-yet-unknown owners of the building’s two remaining units. A penthouse in the building sold for $47 million last year.

“When someone is paying $50 million for an apartment, another $500,000 for the luxury of not walking a block or two and having your own spot, I guess it becomes a rounding error,” Izak Senbahar, president of the company behind the TriBeCA development, told the Times. 

Emily Landes is a writer and editor who is obsessed with all things real estate. She also has a DIY problem that she blogs about at pritical.com.