Have zero experience in this niche. Looking at a commercial property that is 1 mile from a major international airport. The property is overparked (surface parking), so the current owner fenced off about 200 spaces and leased to an airport parking operator ($10/day with a shuttle going back and forth).
I am trying to get a general idea as to how to underwrite the income from the operators's POV. 200 spaces x $10 per day x 365 days = $730,000, minus some sort of vacancy % to get an effective gross income. Assuming taxes/insurance/CAM/payroll, I'm guessing you could still clear $400,000 NOI or thereabouts?
I'm trying to value that piece to determine if purchasing the property and carving off the parking, either selling direct to the operator, or getting a long term lease and capping the NOI and selling to an investor, makes sense from the perspective of lowering the basis in the property.
Thoughts?
Are you working for Stussy Parking Lots in ND?
nope
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