Parkway Corp. has raised a $100 million fund to buy up surface parking lots across the U.S. that present future development opportunities.
The concept of unlocking greater value of parking assets is nothing new for the 92-year-old Philadelphia company. In Center City, for example, Parkway is developing a new 19-story, $200 million headquarters for law firm Morgan Lewis & Bockius atop a former surface lot at 2222 Market St. Similarly, the Philadelphia Business Journal reported on Wednesday that Parkway is finalizing a deal with Chubb Ltd. to build a new 475,000-square-foot office tower for the insurance giant on the site of a lot at 2000 Arch St.
Parkway Corp. CEO Robert Zuritsky said the company’s head of acquisitions, David Dobkin, studied markets throughout the country and “put together a world view of which cities look like they are emerging or about to emerge” for future deals. The company has already purchased two surface parking lots in Richmond, Virginia, one in New Orleans and one in Tampa through the $100 million U.S. Land Carry Fund I LP.
The company is focusing on 10 cities for future deals, the specifics of which Zuritsky declined to disclose.
This is really Parkway’s core competency,” Zuritsky said. “We know about buying property, operating them successfully, and doing something with them.” He added that the company would pursue deals outside of the 10 cities if the right opportunity arose. “There’s really no barrier for entry for us,” he said.
Backers of the fund include “some of the most innovative people across all commercial real estate asset classes and non-real estate asset classes,” Parkway said. Zuritsky declined to disclose specifics on the partners but said they will bring a lot of expertise to future projects. The fund is “focused on acquiring surface parking lot facilities that have current operating cash flows where a higher or better use may be achievable over a longer time horizon,” according to Parkway.
Parkway’s portfolio consists of parking and mixed-use assets in central business districts across the U.S. and Canada, including more than 21,000 parking spaces across over 80 structured and surface assets.
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