SPECIAL TO: Alby Gallun - May 1, 2003 - CRAIN'S CHICAGO BUSINESS

Field Harbor Parking:
400 CONDOMINIUM PARKING SPACES PLANNED FOR 400 E. RANDOLPH STREET

CHICAGO - An investment group has launched the conversion of 400 parking spaces to condominium ownership in a garage at 165 Field Harbor Drive in Chicago's Near East Side neighborhood, just east of the Loop. Field Harbor Parking, LLC, a Chicago-based investment group, said the spaces are in a 2-story parking garage built on air rights under the Outer Drive East Condominium--a premier 944-unit high-rise condominium development at 400 E. Randolph--which overlooks the Millennium Park on Randolph Street and the Outer Drive. "The strategically located Field Harbor Parking garage also adjoins the new 5-acre Harbor Park, now being built east of Randolph between Columbus Drive and Lake Shore Drive," said John Kretchmar, of RE/MAX Alliance Lakefront, exclusive sales and marketing agent for the garage spaces.

Harbor Park is the centerpiece of the mammoth Lake Shore East mixed-use development, planned for 17 residential and commercial structures and a new elementary school. The Field Harbor Parking LLC partnership is represented by Dick Delaney, executive vice president of Chicago-based Mark Goodman & Associates. "Each space at Field Harbor Parking is a deeded residential condominium parking space in a heated indoor garage," said Kretchmar, who originally purchased the air rights site from I. C. Industries in the late 1980s and completed the garage in 1989. Kretchmar, a pioneer in condominium parking with more than 300 spaces already converted, sold the garage to Field Harbor Parking LLC in 1993. Marketing of the 200-space first phase of Field Harbor Parking is now underway with 35 spaces already sold at prices ranging from $22,500 to $31,500, he said. "Whether you live at 400 E. Randolph, Harbor Point, The Buckingham, The Park Shore or another nearby condominium tower, or work in a nearby high-rise office building at Illinois Center, owning a parking space at Field Harbor Park will be a good investment," Kretchmar said.

"With monthly parking fees approaching $300 a month in downtown Chicago, if you own a condominium nearby, are a corporate executive who rents office space nearby, or own a yacht moored at Monroe Street Harbor, it makes sense to invest in a parking space at Field Harbor Parking," Kretchmar said. He noted that Outer Drive East and Harbor Point condo owners currently pay $150 a month to park in their building garages, which are owned by the condominium associations. "Condo owners in these nearby buildings--who seek the same space in the same place every day--especially should consider purchasing a space at Field Harbor Parking because it will add value to the future resale value of their residences," Kretchmar said. Current monthly garage rents in the area range from $150 a month at Outer Drive East and Harbor Point to $365 a month at the Aon Center. Monthly parking at the East Monroe Garage, 350 E. Monroe, costs $200. At the Grant Park North, 25 N. Michigan Ave., garage parking is $284 a month. For sale parking spaces in at Near East Side condominium buildings currently range in value from $35,000 to $55,000, Kretchmar said.

"Metered parking in the immediate area has been greatly diminished because the city removed many meters on the lower level of Randolph Street, Columbus Drive and Wacker Drive for security reasons after 9/11," Delaney said. "Hourly parkers pay 25 cents per 5 minutes at the remaining meters. That's $3 an hour, or $24 for an eight-hour day." The best part of purchasing a deeded residential parking space at Field Harbor Parking may be the tax advantages, Kretchmar said. Based on an average parking space price of $25,000 with a 20 percent down payment on a 7.5 percent loan from Associated Bank, owners will pay a monthly payment of $265 for principal, interest, real estate takes and monthly maintenance. "So, today's ownership costs for a space at Field Harbor Parking is about the same as current monthly garage parking downtown," Kretchmar said. "However, annual tax benefits, plus depreciation and maintenance deductions will reduce the actual net monthly payment greatly," Kretchmar said.

Field Harbor Parking will have its own condominium association. All assessments for maintenance will be paid to the association. Kretchmar said Field Harbor Parking LLC plans extensive rehab and upgrading of the garage, including new signage, landscaping, a power wash of the entire facility, floor painting, interior lighting, and new access control, security and video surveillance equipment. The car wash, office and bathroom facilities also will be refurbished. New walk-through entrance doors will be installed and direct access to Outer Drive East and Harbor Point Condominium will be provided. For more information on purchasing a space at Field Harbor Parking LLC, please call Paulette Rodriguez at RE/MAX Alliance Lakefront at 312-856-1900.