Is Paying $1 Million For A Parking Space Going Too Far?

CBS News New YorkSeptember 10, 2014

NEW YORK (CBSNewYork) — In New York City we’re no strangers to pricey parking, but is paying six figures for a spot to call your own taking pricey too far?


As CBS 2’s Vanessa Murdock reported, parking in New York City can be a nightmare, which is why so many are willing to fork over their hard-earned cash to avoid the hassle.


“Parking is like $550 a month. (Would you pay $1 million for your own spot?) No, it’s outrageous; doesn’t make sense,” said Michael Magliulo.


“The most anyone has paid in New York City is half a million, but I think it’s been underpriced,” said Shaun Osher, founder and chief executive officer of real estate brokerage firm Core. “Parking is a great amenity and a shrinking amenity in New York City. It’s becoming more and more valuable.”


So that’s why Osher’s firm plans to put a price tag of $1 million on each parking spot underground at 42 Crosby St. in SoHo.


“I’ve driven around three hours to find parking,” said Wendy Levitt. “(So you would pay a million dollars?) If I had the money, absolutely.”


“A million dollars? Come on now,” said Anne Driscoll. “If they’re allowing that for parking then I’m assuming that the affordable housing plan is not going to work out.”


Osher said he believes there will be a huge demand for the pricey parking spaces.


“This is one of the last remaining places in Soho that you could’ve parked your car," he said.


For now, backhoes clear the way for luxury living and luxury parking.


Ten spots will sit below ground with a storage unit and electric charging station included. Each space is slotted to be about 200-square-feet, so price per square foot is $5,000, Murdock reported.


The three bedroom luxury units above ground will cost less — about $3,000 per square foot. While a new single family home nationwide averages for just $93 per square foot.


Each spot is licensed for 99 years, which breaks down to $28 per day to park.


“It’s a bit excessive, but it’s New York City, what did you expect?” said Reena Patel.