A downtown Charleston parking asset shows what happens when fragmented, underpriced parking is brought under one roof and run with modern tools. This 152 space lot was acquired in 2019 for $20.7 million, and it sits within walking distance of retail, office, and commercial properties, along with residential, student housing, municipal parks, and university grounds, all of which drive steady parking demand.
The opportunity
The property was made up of multiple separate parcels. Assembling them into a single contiguous lot streamlined operations and created a more cohesive, higher performing asset. On top of that, the existing parking revenue was running well below its potential, held back by outdated management practices and ineffective pricing. The combination of a fragmented site and untapped pricing upside made this an ideal candidate for optimization.
What we did
The team implemented the HAH Parking software suite to take control of pricing and operations, supported by $50,000 in capital improvements for signage, lighting, and lot enhancements. The goal was straightforward, run the lot like an investment rather than an afterthought, and let demand based pricing capture the value the location was already generating.
Financial performance
The results compounded year over year. At acquisition in 2019, the lot produced $840,000 in annual net operating income. After the improvements and pricing changes, stabilized NOI climbed to $1.9 million, and the property currently generates $2.2 million in NOI.
That growth reshaped the value of the asset. The going in cap rate of 4 percent rose to 9.4 percent at stabilization and stands at 10.9 percent today. At a below market 6 percent cap rate, the property would carry an exit valuation of roughly $36.6 million, with an estimated unlevered internal rate of return of 18.26 percent if sold today.
The outcome
What began as a collection of underpriced parcels became one contiguous, high performing asset producing more than two and a half times its original NOI. The property remains a strong long term hold, with significant value created from a modest capital investment and a smarter approach to pricing.
Ready to unlock the value of your lot?
We have helped property owners increase NOI by 25 to 100 percent with no hardware, no upfront cost, and setup in days. Book a discovery call to see what your lot could be worth.
