The financial problems involving one of New York City's most prominent housing developments have been resolved.
According to a Bloomberg News report, the Savoy Park apartment complex – a seven-building, 1,800-unit property spanning four blocks in the city's Harlem section – was sold for more than $210 million to a real estate fund created by Citigroup Inc. and L&M Development Partners. The purchase price equals the outstanding balance on the complex's delinquent senior mortgage.
Savoy Park was purchased in 2006 by AREA Property Partners LP and Vantage Properties LLC for $175 million. AREA and Vantage borrowed $367.5 million against the property in 2007, including a $210 million senior mortgage. However, the complex's valuation declined sharply after its purchase: Bloomberg data found that Savoy Park's $420 million appraisal in 2007 plummeted to $153.3 million by 2011 – and AREA and Vantage were unable to repay their debt on the complex.
‘We are pleased the property is transitioning to excellent new owners that will continue to maintain Savoy Park as a model community for families in Central Harlem,’ says Neil Rubler, president and CEO of Vantage.
(Photo courtesy of ZeroHedge.com.)
