Caption: Millennium Underground Parking Garages, Grant Park North Entrance
Photo Credit: City Tech
Project Name |
Millennium Parking Garages Concession |
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Location |
Chicago, Illinois |
Project Sponsor / Borrower |
The City of Chicago |
Program Areas |
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Value Capture Techniques |
Asset Recycling |
Mode |
Parking |
Description |
Millennium Garages are the largest underground parking system in the United States. It includes 9,176 parking spaces in four underground parking garages underneath Millennium and Grant Parks. The facility is approximately 3.8 million square feet and extends from Van Buren Street to Randolph Street and in parts from Michigan Avenue to Lake Shore Drive. In 2006, Chicago Loop Parking, LLC (CLP) entered into a concession and lease agreement (the C&L Agreement) pursuant to which it leased the Chicago Downtown Parking System in Chicago, Illinois for a 99-year term from the City of Chicago. Under the agreement, Chicago relinquished control of all four city parking garages downtown to Chicago Loop Parking, for 99 years, for a onetime payment of $563 million. LMG2, LLC (LMG2), in 2014, was assigned CLP's assets, including the concessionaire interest in the System, and assumed certain of CLP's existing loan and other obligations through an Assignment in Lieu of Foreclosure Agreement. In 2016, LMG2sold the concession assets for the Chicago Downtown Public Parking System, or Millennium Garages. Millennium Parking Garages, LLC (MPG), a joint venture between Northleaf Capital Partners and AMP Capital, purchased substantially all of LMG2 assets, including its right, title and interest in the C&L Agreement for $370 million. With the sale, Millennium Parking Garages has the exclusive rights and responsibilities during the remainder of the 99-year lease term to use, possess, operate, manage, maintain, rehabilitate, and charge and collect parking fees and other revenues in connection with using the assets of the System for parking garage purposes. The company announced Chicago’s SP+ Corporation will operate the garages. With 9,176 parking spaces across four underground garages, Millennium Garages is the largest underground parking system in the United States. It spans 3.8 million square feet under Millennium, Grant, and Maggie Daley Parks. The system also extends from Van Buren Street to Randolph Street and—in parts—from Michigan Avenue to Lake Shore Drive. |
Cost |
$563 million Onetime Upfront Payment (2006) |
Funding Sources |
Equity Providers: North Haven Infrastructure Partners I (NHIP I); 100% Concessionaire: Morgan Stanley/ Laz Parking SPV: Chicago Loop Parking LLC, $ 402.00 million |
Project Delivery / Contract Method |
99 Years Lease Concession |
Private Partner |
Morgan Stanley/ Laz Parking |
Project Advisors / Consultants |
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Lenders |
Societe Generale (SocGen), $150 million |
Duration / Status |
January 2016 – May 2016 |
Financial Status/Financial Performance |
Financial Closed on Dec. 15, 2006 |
Innovations |
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Related Links / Articles |
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Contacts |
George Zakem |
