The Housing Partnership was proud to have served as the nonprofit partner of Fairstead Capital’s acquisition of Savoy Park, once a financially distressed housing development located in Central Harlem. The project closed at the end of June 2017. Fairstead is maintaining the prior ownership’s collaboration with local housing agencies and local elected officials. The collaboration will implement a preservation transaction that provides significant fresh capital to stabilize the project and will bring all the units back into stabilization through an Article XI regulatory agreement with the city to ensure long-term affordability. The transaction will preserve a formerly at-risk, overleveraged rent stabilized asset; a significant victory for current tenants and local housing officials.
“Fairstead is committed to preserving affordable housing at Savoy Park and continuing to improve the property and quality of life for all of the residents of this important community,” said a spokesperson for the company. “We are excited to build on the innovative preservation efforts of the current owners which put deregulated units back into rent stabilization and provided additional affordability protections by way of rent and income caps over a 40-year period.”
The Savoy Park Apartments, originally known as Delano Village, are located between 139th and 142nd Streets and Fifth and Lenox Avenues in Central Harlem. The project is a rent stabilized residential complex constructed in 1959 and composed of seven 16-story buildings with 1,802 units. Savoy Park Owners LLC, a partnership between Vantage Properties and Apollo Real Estate Advisors, purchased the asset in March 2006 from the Axelrod Family, the original developers of the property. Savoy Park Owners LLC defaulted in December 2009 on the mezzanine loan. The default triggered a series of restructurings that ultimately resulted in a subsequent default on the senior loan.