Rare Standalone Parking Garage Sells for $10,650,000

Local and national buyers bid for asset marketed for the first time since it was developed in nearly 25 years.

February 24, 2020 – Colliers International announced the sale of California Street Parking for $10,650,000.  The 325-parking space garage is located at 1627 California Street, Denver, CO.

Built in 1998, the 9-story garage is one of the few standalone, purpose-built parking garages located in the core of downtown Denver.  The garage serves parking for daily and monthly users in addition to a nearby condo development.  The unnamed, private seller was the original developer and was exclusively represented by Colliers International brokers Craig Stack and Bill Morkes.

The buyer, MMDC Commercial Real Estate of Portland, was self-represented, and was already experienced with the Denver parking market, previously acquiring the Stout Street Parking Garage at 1735 Stout Street in 2008.

“We’ve read articles in recent years that there will be self-driving cars that will eliminate the need for parking.  The overwhelming interest from buyers for this property clearly demonstrate that many investors don’t see that risk,” stated Mr. Stack “In fact we’re seeing new multifamily and commercial development in downtown being built with significantly lower parking requirements than in the past, resulting in pent up demand for parking spaces.”

“Once abundant surface parking lots are disappearing rapidly in the wake of extensive urban development,” add Mr. Morkes “Many investors that offered on the property think parking garages offer long-term durability and cash flow with less downside than other assets.”