University of Toledo Parking System Monetization

To bolster its finances and to make long-deferred, necessary repairs to its on-campus infrastructure, the University of Toledo (“University” or “UT”) sought to monetize its parking system via a long-term concession and lease transaction (commonly referred to as a P3). Having worked for the University in the past, including advising on a similar proposed transaction in 2016, Walker was proactive in reaching out to the University when the RFP for the transaction was released in November 2020.

After learning that the University had not engaged any outside advisors to help guide them through the transaction process, Walker offered its services and significant experience working on similar transactions to UT. Walker was quickly retained by UT to advise on the transaction process, develop initial financial projections for the parking system, evaluate the physical condition of the parking system assets, assist in the
development of transaction documents, generate interest in the transaction among both investors and parking operators, evaluate the qualifications and capabilities of potential partners, and aid University administrators in the selection process.

UT was under significant financial strain, hosting 66 surface parking lots across the Main Campus and Health Sciences Campus, totaling 10,755 spaces. Deferred maintenance costs totaled over $10MM.

Walker structured the transaction process to ensure success while generating interest among investors and parking operators. Walker then developed initial system financial projections and transaction documents and guided the University through the process step-by-step.

As a result, UT received an upfront payment of $52.5MM with potential for ongoing revenue share, as well as an additional $10MM committed to capital repairs and maintenance over the first three years of the agreement. Overall, the project resulted in the simplification of the University’s parking permit system and modernization of the entire parking operation.