The Savoy Park Group has hit a new hurdle in its effort to transform a rent-regulated apartment complex into market-rate residences. Crain’s reported that the total valuation of the group’s 1,802-unit Harlem apartment complex fell 49 percent to $75.5 million in less than a year, citing Trepp data.
Last August, the property was valued at a total of $153 million. Savoy Park Group, which includes Area Property Partners and Vantage Properties, bought the complex at the height of the market in 2006 for $175 million. The group later refinanced and put $367.5 million of debt on the property, including a $210 million loan that’s due in 2014. The loan has been delinquent since July 2011, Crain’s said.
As The Real Deal previously reported, the Savoy Park complex was featured in Trepp’s list of distressed properties in December.
Crain’s noted the depreciation of Savoy Park is typical of the high-profile purchases of rent-regulated housing during the peak years that largely haven’t been successfully repositioned by the new ownership. [Crain’s]