North York Square - Increased Parking Utilization and Revenue for Existing Spaces

Toronto, Ontario

Spaces:

420

Area:

240,000 sf

Acquired:

2002

Purchase Value:

$29.0M

Current Value:

$57.5M

Developed By:

Parkway Corporation

 

 

 

Client

Crown Realty Partners

About Crown Realty
Crown Realty Partners is an active buyer and manager of commercial office properties in the Toronto market.

Crown strives to provide above average returns on real estate investments by selectively buying existing office properties and repositioning them through the upgrading of the building systems and finishes, intensifying leasing activities at cost competitive rental rates and by applying first class management.

Description
In December of 2001, Crown Realty Partners was in the due diligence phase of buying a 240,000 square foot two-building office and underground garage complex that included a problematic, busy surface parking lot.

Prior to Crown's purchase of the complex, Parkway Corporation was asked to submit a proposal detailing how we could provide parking management superior to that provided by the then current ownership. Parkway proposed a new parking strategy that used the existing spaces differently and increased the transient capacity by over 50%. The added capacity resolved the previous backups at the parking entrance. At the same time, we were able to eliminate a tenant waiting list for monthly parking.

The solution involved utilizing all the spaces, including those at grade and in the garage below grade, as a single, synchronized system. The parking shortage at the site was only a perception, not a reality. Parkway was able to harness the complex's full parking capacity while driving up revenue.

Business Challenge
The complex includes a 125 car surface lot and a 295 car underground garage. Cars were constantly blocking the parking entrance while they waited to get parking spaces, reinforcing the office tenants' perception of an extreme parking shortage.

The problem was hurting lease renewal negotiations and the ability to attract new tenants. Additionally, there was a poor level of service that was not compatible with Crown's goals to reposition the complex and earn a high level of investment return.

Parkway not only offered parking solutions to these problems, but also did it in a way that added value to both the building purchaser and to Parkway.

The Solution
Parkway became both an investor in the building and the parking operator.

The lower level garage had been used exclusively for monthly parkers and was a little below full capacity. The surface lot in contrast was parked to capacity from opening to close, with short term half-hour to hour-and-a-half customers. A long line of parkers would wind out into the curb lane of the street waiting for each car to exit so one could enter.

Value and Benefits Delivered

Parkway added value.

We believe so strongly in our ability to provide added value to existing parking assets and also to the properties the parking serves that we actively seek out opportunities to co-invest alongside owners of the properties for which we manage the parking.