MVP REIT Inc., a publicly registered non-traded real estate investment trust that invests in parking facilities, closed on the purchase of a parking lot for approximately $3.46 million in cash. The 202-space parking lot is located at 901 Lucas Avenue in St. Louis, MO.
The property, which totals 46,683 square feet, will be leased by SP Plus Corporation, a nationwide parking operator, under an NN lease with an annual rent of $220,000. The lease provides revenue participation with MVP REIT receiving 65 percent of gross receipts between $325,000 and $395,000, and 50 percent of gross receipts in excess of $395,001. The term of the lease is five years.
MVP REIT also closed on the purchase of a 95-space parking lot for approximately $3.9 million in cash. The 41,487-square-foot lot is located at 735-749 N. 2nd Street and 746-752 N. Old World Third Street in Milwaukee, WI.
The Milwaukee parking lot will be leased by PCAM LLC, an independent parking operator, under an NNN lease. PCAM will pay annual rent of $280,000. In addition, the lease provides revenue participation with MVP REIT receiving 50 percent of gross receipts over a contractual threshold of $710,000. The term of the lease is for 10 years.
As additional consideration for the purchase of the parking lot, MVP REIT and PCAM have entered into a participation agreement, where PCAM will be entitled to 25 percent of the net proceeds in excess of $3.9 million, if any, from the future sale of the parking lot.
To read more about MVP REITs recent parking lot buying spree, click here.
With the purchase of these two parking lots, MVP REIT owns 13 parking facilities located in seven states and one self-storage unit. As of June 30, 2015, MVP REIT has issued 6,899,873 shares of its common stock and an additional 87,840 shares through its distribution reinvestment program.