Not every Uptown parking lot is destined for development.
San Diego-based MVP REIT last month bought a surface lot at Sherman Street and 20th Avenue for $585,000.
The plot is zoned for a 16-story building.
But while several major developments take shape in Uptown, MVP Regional Vice President Brandon Welch said he has no plans to build.
“The objective of our firm is to buy parking assets in CBDs (central business districts) all across the country and collect income for the REIT on those parking assets,” he said. “The objective is to hold this lot and collect income from it.”
The 0.1-acre parking lot is MVP REIT’s first acquisition in Denver. Welch said the company is always on the lookout for parking structures – it also recently acquired a seven-story Ohio parking garage – but doesn’t have any more lots targeted in the Denver area.
Welch said MVP REIT typically looks for lots that sit on valuable real estate. He liked the Sherman Street parking lot for its location on the fringe of downtown Denver.
The Sherman Street lot is currently leased to the Denver School District, whose employees will continue to park in the lot’s 28 spaces.
“Typically the entire lot is leased by an operator, so the name of the operator you would see on a sign at a paid parking lot is our single tenant for a property,” he said. “Very infrequently we have a tenant that actually uses the parking lot for their purposes, so this is a little bit of an exception.”