On-site parking requirements present a myriad of challenges in New York City. In recent years, developers of new condominiums and cooperatives have adopted a technologically advanced solution to providing parking and maximizing project value while maximizing the use of available building space for commercial units, apartments and additional amenities. One growing trend is the installation of an automated parking system within the building itself. In the context of a condominium or cooperative offering, sponsors offer ownership of parking spaces through license agreements. When a vehicle approaches the automated parking system, the system’s computer selects the parking space based on availability.
Automated parking systems offer several advantages:
- Space Efficiency: These systems take up less space compared to traditional garages or parking lots, since they utilize vertical stacking and computer-controlled metal platforms to park and retrieve vehicles efficiently.
- Cost Savings: By eliminating the need for parking attendants, security personnel, and frequent cleaning associated with traditional parking facilities, developers and boards can reduce operating costs.
- Convenience: Automated parking systems provide a convenient parking experience. The driver simply drops off and retrieves their vehicle at a designated entry point, and the rest is handled by the parking system’s computer.
- Maximizing Project Values: In today’s market, units in a condo or coop with on-site parking are more valuable than units in developments without this amenity. Sponsors can sell long-term parking licenses to unit purchasers for substantial prices, which in Manhattan have exceeded $100,000 per license.
Seiden & Schein, P.C. has years of experience representing sponsors that have incorporated automated parking systems into their buildings. We routinely assist developers in addressing various legal, budgetary and operational considerations necessary for disclosing information to potential purchasers of parking spaces through license agreements. For more information, please contact a partner in the Condominium and Cooperative Group at Seiden & Schein P.C., The Law Firm for Sophisticated Developers.
Alvin Schein aschein@seidenschein.com
Adam A. Levenson alevenson@seidenschein.com
Jane Rosenberg jrosenberg@seidenschein.com
Seiden & Schein, P.C.
570 Lexington Avenue, 14th Floor
New York, New York 10022
www.seidenschein.com
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