This case study follows a piece of unused land in a South Carolina beach town as it became a productive, income generating parking asset. Purchased in 2022 for $1.85 million, the property sits in the downtown area within walking distance of restaurants, bars, and shopping, a setting that produces strong, seasonal parking demand.
The opportunity
At acquisition, the land was effectively idle, which meant a going in cap rate of zero. The location told a different story. High seasonal traffic and proximity to popular destinations made it a clear candidate for parking. The plan was to convert the land into a functioning lot and let demand do the rest.
What we did
The lot started with 15 existing spaces. With a modest capital investment of $45,500, the team expanded capacity to 25 spaces through the HAH Advantage program and brought the property online as a managed parking asset. The improvements were cost effective by design, the goal being maximum income with minimum capital.
Financial performance
The property ramped over three years. In year one, 2022, the lot was rented to four food trucks and generated $96,000 in revenue, a 5.1 percent cap rate. In year two, 2023, the parking conversion was completed and produced $122,000 in parking revenue, with one remaining food truck adding $24,000, for $146,000 in total revenue and a 7.9 percent cap rate.
In year three, 2024, parking generated $144,000 and the remaining food truck added $24,000, bringing total revenue to $168,000 and the cap rate to 9.1 percent. At a below market 6 percent cap rate, the property would be valued at approximately $2.8 million, which translates to an estimated unlevered internal rate of return of 20.08 percent over the three years of operation.
The outcome
Raw, unused land became a stabilized asset earning $168,000 a year and worth an estimated $2.8 million, all from a $45,500 conversion and a smart read of local demand. It is the clearest possible example of turning idle ground into a high performing parking asset.
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