Real Estate

How one luxury NYC building is making a bid for residents: Access to exclusive car-sharing, or a $550K parking space

Key Points
  • 565 Broome, a new condo tower under development in New York's SoHo neighborhood, offers residents a range of high-class luxury perks.
  • In response to the city's transportation crunch, would-be denizens will have access to a fleet of shared BMWs, or private parking that costs $550,000.

New York City's sprawling skyline is being altered by a relentless property boom — with luxury apartment building owners falling all over themselves to offer a bevy of high-end perks to would- be residents.

The tight real estate market has coalesced with an acute problem: A subway system teetering on the brink of collapse and nearly impossible street parking. With that in mind, one luxury property currently under construction has come up with a unique set of perks tailor-made to address New York's transportation woes.

Alas, like most things in New York, it won't come cheap.

In a city where street parking is tough to find, the proprietors of 565 Broome Street — a 30 story, dual-tower condominium that boasts of being the tallest residential property in Manhattan's SoHo neighborhood — are offering residents two plum options to beat the city's transportation crunch.

The condominium project has apartments with asking prices between $1 million and $20 million, and tennis star Novak Djokovic has already bought two units, a representative told CNBC. New York real estate broker Douglas Elliman handles all sales and marketing for the property.

Once complete, 565 Broome will feature a range of opulent amenities like a saltwater pool, a glass-enclosed landscaped terrace, and a gym. Among other lavish perks, the complex will have 40 private parking spots, which sell for a whopping $550,000 each. In a bit of good news for Tesla drivers, each slot will have two charging stations for electric cars.

For residents without half a million to spare, the building will offer exclusive 24-hour access to a fleet of Mini Coopers and BMW 3 Series cars operated by ReachNow, BMW's recently-launched car-sharing service.

A rendering of 565 Broome Street in New York City.
Source: Noe & Associates with The Boundary

Residents "will use it for short trips, or if they need to go buy something," said Alessandro Pallaoro, executive vice president of business development of Bizzi & Partners, the developer of 565 Broome.

Pricing for ReachNow, which is active in Seattle, Portland and Brooklyn, is fairly reasonable: It costs users 41 cents per minute, which gets capped at $20 per hour. Additional options range from $50 for 3 hours, $110 for a full day, or between $220 and $550 for multi-day use.

"As [car sharing] happens in other cities throughout the world, I think New York City will embrace electric cars and that will make it much easier to drive around … in the foreseeable future," Pallaoro told CNBC in a recent interview.

A rendering of 565 Broome Street in New York City.
Source: Noe & Associates with The Boundary

Bizzi & Partners appear to be making a shrewd appeal to residents frustrated with the growing problems associated with getting around in the big city.

More than 2 million registered vehicles regularly navigate New York's congested streets, according to data from the Department of Motor Vehicles. However, parking to hold them all is maddeningly scarce, while costs can sometimes rival the skyrocketing price of bitcoin.

Amid a surge in residential construction, only 69 multiple dwelling buildings completed in Manhattan within the last 20 years offer parking, figures from the New York City Department of Buildings showed. Even among the thousands of apartment buildings dotting the landscape of New York's five boroughs, the data showed that fewer than 600 citywide have parking spots.

"Parking in general is relatively rare in the city for the most part, but when it gets to luxury buildings it becomes a bit more popular," said Collin Bond, a broker at Triplemint Real Estate.

"Ultra-luxury buildings are adding a lot of perks from wine tastings to Pilates and yoga," with parking being yet another layer of opulence for would-be residents, Bond said. While $550,000 is the going rate, private parking can top $1 million in some places, "and you still have a maintenance fee of $200-$300 per month," he added.

Correction: 565 Broome is a 30-story dual tower development.