A joint venture led by AREA Property Partners has sold an apartment complex in Manhattan’s Harlem neighbourhood for approximately $210 million to a Citigroup-led housing fund, according to a report by Bloomberg.
The venture between AREA and Vantage Properties has sold the Savoy Park apartment complex, a 1,800-unit multifamily property, to a real estate fund created by Citigroup and L&M Development Partners. Citing sources familiar with the matter, Bloomberg is reporting that the complex sold for the outstanding balance on the delinquent senior mortgage, satisfying the loan.
AREA and Vantage originally bought Savoy Park in 2006 for $175 million. The following year, the venture borrowed against the property, adding $367.5 million of debt including a $210 million senior mortgage that was packaged into bonds and sold to investors.
According to a statement issued by the buyers, the seven apartment buildings between 139th and 142nd streets in Harlem will remain designated as affordable housing. The vehicle taking over the complex, known as the New York Affordable Housing (NYAH) Preservation Fund, was formed by Citigroup and L&M in 2010.
“This is our third transaction with the NYAH Preservation Fund, and they have proven to be an ideal partner in the continuation of providing high-quality affordable housing in New York City,” said Richard Mack, AREA’s chief executive officer of the Americas.
The NYAH Preservation Fund will invest millions of dollars for capital improvements to the complex. C&C Affordable Management, an affiliate of L&M, will assume management of Savoy Park following a transition period, in which Vantage will continue to assist C&C with the management, operations and maintenance of the property.