$1 Million Will Buy New Yorkers a Parking Spot in SoHo

Sep 11, 2014 02:00 PM EDT | Matt Mercuro

A New York property developer is offering rich people the chance purchase a condo parking spot for $1 million, or six times the value of a normal American home.

The 10 parking spaces are up for sale at 42 Crosby Street, a luxury apartment building under construction in the country, said the broker marketing the seven-story building.

"Anyone who lives in Manhattan and has a car knows that parking is a premium in the city," said Shaun Osher, chief executive of the brokerage CORE to Reuters. "There's definitely a large demand and a short supply."

The 150-to-200-square-foot parking spaces will be offered under a 99-year license to tenants.

Osher said tenants will have the right to transfer or sell their spaces to other building residents.

Prices for the spots compare with the U.S. median single-family home value of $174,800, according to real estate website Zillow.

There are few, if any, residences for sale in SoHo, which is known for its art galleries and high-end fashion, for that price however.

Osher expects residents of the 10-unit building to purchase the parking spots when the underground spaces hit the market, according to Reuters.

The spaces were approved for construction this week.

Osher said the spots come with storage space and electric car chargers as well to accommodate drivers.

The building will include 10 luxury condominiums priced at a minimum of about $8 million.

Each tenant will receive private elevator access, said Osher.

"Most ultrahigh-net-worth individuals have car collections as well as service vehicles for their staff," said Giles Hannah, a senior vice president at Christie's International Real Estate, according to The New York Times. "Parking is in serious demand and has proven an excellent investment with no sign of a decline."

 A Tribeca development is offering spaces for $500,000 apiece.

"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, the president of the Alexico Group behind that development, said to the Times. 

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