LAS VEGAS-MVP REIT Inc. has completed the first acquisition in a $13.5 million, six parking facility portfolio.
The downtown Fort Lauderdale, FL property is an approximately 0.75-acre parking lot acquired for $3.4 million. Located at 208 SE 6th Street, the 32,750-square-foot site includes a 66-space car lot and 4,017-square-foot office building directly across from the Broward County Courthouse.
"Parking facilities generate more than $20 billion in cash flow nationwide, according to the International Parking Institute," said Mike Shustek, chairman and CEO of MVP REIT. "Their relatively low cost of capital, minimal labor expense and ability to respond quickly to inflation make them attractive investments."
MVP REIT and Vestin Realty Mortgage II Inc. formed a limited liability company to purchase the parking lot, which is owned 68 percent by Vestin and 32% by MVP REIT. Percentages were based on their capital contributions. MVP REIT and Vestin have also formed limited liability companies to acquire the additional five parking facilities.
The ownership of those limited liability companies will be based on the capital contributions of each of Vestin and MVP REIT.
The remaining five properties in the portfolio are expected to be acquired on or around September 10. The parking facilities are located in Baltimore, Md.; St. Louis and Kansas City, Mo.; and two in Memphis, TN. They are currently leased to operators under triple net leases.

MVP REIT intends to operate as a publicly registered, non-traded hybrid real estate investment trust. It is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9.00 per share and up to an additional 5,555,556 shares of its common stock for issuance under its distribution reinvestment plan at $8.73 per share. MVP REIT intends to use the proceeds from the offering to invest in a diversified portfolio of income producing commercial real estate properties and loans secured by income-producing commercial real estate as well as to pay expenses and fees associated with the offering.