Privatization

Universities, hospitals, municipalities and other parking asset owners can outsource parking management to expert private vendors. Privatization allows them to focus on their core mission rather than worrying about auxiliary services. It can also generate revenue to pay debt and fund projects.

DESMAN’s privatization expertise is unprecedented. Our consultants have led many successful transactions for buyers and sellers, including the city of Chicago, which privatized its Grant Park/Millennium Park garages through a 99-year lease. The city received $563 million upfront and avoided expensive garage repairs. DESMAN identified the garages’ revenue potential and anticipated operating and maintenance costs for the lease term.

Our team also negotiated the first long-term concession lease for a public university’s parking assets. DESMAN represented Ohio State University as it sought to lease 36,000 spaces for a minimum of $350 million upfront. Our efforts helped the university get a $483 million bid.

DESMAN’s comprehensive analyses keep buyers from overpaying and help sellers receive a fair price. We not only look at future revenue potential, capital expenses and necessary upgrades, but also market factors that can affect parking demand, including competition, alternative transportation options and population growth.