Historic Motor Mart Garage Sells at Steep Discount
The Motor Mart Garage, an Art Deco building with a rich history that once held the title of the world’s largest parking garage, has recently been sold for a significantly lower price than what it was previously valued at. This iconic structure is located at the edge of Bay Village and Back Bay in Boston.
Real estate firms Related Beal and Freeport Equity, based in Fort Lauderdale, Florida, finalized the purchase this week for $89 million. This sale marks a remarkable 45% drop from the garage’s last sale price, as reported by an insider who wished to remain anonymous. As of Wednesday afternoon, the official records of the sale had not yet been updated in Suffolk County.
Kimberly Sherman Stamler, president of Related Beal, expressed her excitement about the acquisition, stating, “Motor Mart is right in the center of a neighborhood we have been investing in for years and has great potential for future residential and commercial development.”
The Motor Mart Garage features 1,037 parking spaces and is part of a broader trend where many properties in Boston and beyond have been selling for less than their previous purchase prices. The recent change in ownership stands out due to the steep discount. For example, this summer saw Oxford Properties Group acquiring a nearly fully leased office in the Seaport District for $435 million, which was a 10% reduction from its previous sale price. In addition, a major tower located at 100 Summer St. is scheduled for a foreclosure auction.
Looking ahead, approximately $1.26 trillion in commercial real estate mortgages will mature next year, a jump from $950 billion in 2024, according to S&P Global Market Intelligence. This influx could provide opportunities for investors looking for deals, but it may also lead to significant losses for some.
Ian Brandon, chief commercial banking officer for Cambridge Savings Bank, noted the dual nature of this situation, stating, “There will be a lot of opportunities, but there will also be some pain.” He shared these insights at a recent event organized by Bisnow, a company focused on real estate news and events.
Ten years ago, the Motor Mart Garage was acquired by CIM Group for $162.5 million. The firm had plans to construct a 20-story condominium tower within the existing structure, which would have included 231 units, a rooftop deck, and possibly a grocery store. However, this project never moved forward.
When approved in October 2019, just before the global pandemic took hold, the construction cost was estimated to be around $525 million. Today, that figure would likely rise to an estimated $775 million based on recent federal construction data.
A spokesperson from CIM Group did not respond to requests for comments on the recent sale, and details on Related Beal’s future plans for the Motor Mart Garage remain unclear.
Note: An earlier version of this article mistakenly reported the percentage drop in the sale price of the Motor Mart Garage. The correct figure is indeed 45%.
