Savoy Park, a 1.802-unit complex of seven multistory apartment buildings in Harlem, has been put on the market by the developer Fairstead, which co-owns the complex with Artemis Real Estate Partners and C-III Capital Partners.
Fairstead is expecting bids for Savoy Park to start at $400M, according to a Green Street report, which said the sale of Savoy Park will be handled by Cushman & Wakefield.
Perhaps even more valuable than the venerable 7-building housing complex, which used to be called Delano Village, are the air rights over the 13-acre site. The owners say the property could be sold to a new owner with up to 337K SF of air rights, and a new owner would be eligible to apply for an additional 1M SF in air rights.
Fairstead bought the seven-building complex for $315M in 2016, when it was known as Delano Village, from an investor group including L&M Partners and Savanna. After the purchase, Artemis and C-III were added to the ownership group.
All units in the complex, which is 93% leased, have been designated affordable and are reserved for those earning between 80% to 150% of the area’s median income.
An agreement must be reached with the city to ensure that the units remain affordable. Fairstead is telling bidders that an amendment to its current arrangement allows one-bedroom units in the complex to be divided into studios, potentially adding 600 new units to the housing complex, Green Street reported.
Fairstead specializes in affordable housing, last year partnering with Invesco to purchase a portfolio of 48 Bronx properties designated affordable, including about 2,000 apartments encompassing 2.3M SF, from Property Resources Corp.
Last month, Fairstead launched Fairstead Ventures, a $100M fund to back proptech startups developing technology it can use within its portfolio, which the company says is on track to grow by more than 30,000 units over the next 12 months.
Fairstead named Aki Karja is new Director of Proptech and said Fairstead Ventures would support technology to “sustainably retrofit aging affordable housing stock” and would be deployed to “scale new and proven technologies to enterprise level.
The Fairstead Ventures launch is part of an ongoing $500M equity commitment announced last fall by the developer aiming to grow its multifamily portfolio and enhance its proptech, sustainability and community impact programming.