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US parking: Searching for a pulse

09 November 2010

Read more: [US] [parking] [Pittsburgh] [Indianapolis]

The future of US brownfield parking concessions is in limbo. Deals in Pittsburgh and Indianapolis, which were set to signal the revival of the market after a two-year hiatus, have hit obstacles, leaving everyone, from sponsors to lenders, awaiting their resolution. Brownfield parking leases are attractive investments for investors. Chicago Parking Meters, the first significant US parking meter lease bought by Morgan Stanley Infrastructure Partners for $1.16 billion in 2008, said in its bond offering memorandum that it expects to earn at least $11.6 billion in revenue, over its 75-year term for sponsors Morgan Stanley (50.1%), Allianz Capital Partners (25%) and Abu Dhabi Investment Authority (24.9%). At least seven firms expressed interest in both the Pittsburgh and Indianapolis assets, though the grantors ultimately received only three and seven bids, respectively. A consortium of JP Morgan Asset Management and LAZ Parking was named preferred bidder for Pittsburgh with a $451.7 million...


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