Savoy Park investors aim to restructure $210 million in debt

Like Tishman Speyer before it, the Savoy Park group, a conglomerate that had hoped to transform a rent-regulated complex into a market-rate residential development, is facing some major debt problems, according to the Wall Street Journal. The group, which includes Area Property Partners and Vantage Properties, bought the 1,802-unit Savoy Park complex in Harlem at the height of the market for $175 million in 2006. But, after refinancing the property and putting $367.5 million worth of debt on the complex, the investment group found itself in hot water. Savoy Park group is now seeking to restructure $210 million worth of the debt, and while the loan won’t run out till 2014, industry experts say the property owners must act fast to hang onto their investment. Luckily, according to James Simmons, a partner with Area, payment on the group’s loan remain current and he doesn’t expect a default. [WSJ]