Fairstead closes on $315M purchase of Savoy Park
Capital One provides $239M loan for 1,800-unit Harlem complex
UPDATED, 4:46 p.m., July 11: Fairstead Capital closed on the $315 million purchase of the 1,790-unit rent-stabilized apartment complex Savoy Park in one of the largest multifamily deals of the year, the firm announced Monday.
To close the deal, Fairstead secured a $238.9 million Freddie Mac loan from the multifamily finance arm of Capital One, sources told The Real Deal.
The Midtown West-based multifamily investment firm plans to keep the 10.5-acre Harlem complex as affordable until at least 2052. That year marks the expiration of the 40-year agreement that the former owners — L+M Development Partners [TRData], Savanna and partners — made with the city in 2012, when they paid $210 million to pull it out of foreclosure.
Savoy Park contains seven 16-story buildings located from 139th Street to 142nd Street between Fifth and Lenox avenues. All of the apartments are rent-stabilized units. Planned renovations at the complex will include the upgrading of public spaces, interior common spaces and security systems.
The 2012 deal saved Savoy Park around $2.4 million in annual real estate taxes through a tax abatement. L+M and Savanna then restructured the debt and extensively renovated the complex, which was built as Delano Village in the late 1950s.
Savills Studley’s Jeffrey Baker and Graham Hobbs and Ariel Property Advisors’ Victor Sozio and Shimon Shkury brokered the deal. Drew Anderman and Alan Blank of Meridian Capital Group brokered the financing.
The sales price comes out to roughly $176,000 per unit.
Fairstead is led by Jeff Goldberg, Will Blodgett, and Stephen Siegel and Andrew Goldberg of CBRE. The firm, which owns and manages about 6,000 rental units in the city, is in contract to sell a 47-building East Harlem portfolio in partnership with E+M Associates for north of $350 million and recently bought a single-room occupancy hotel on the Upper West Side for $22.5 million.