Savoy Park Apartments

Cushman & Wakefield has been retained as the Owner’s exclusive agent to offer for sale a 100% fee simple interest in Savoy Park Apartments (“Savoy,” “Property,” or “Offering”). The seven-building, institutional-quality asset spans West 129th and West 142nd Streets between Lenox and Fifth Avenues. Given high barriers to entry, including scarcity of land, Savoy is uniquely positioned to benefit as apartment demand continues to grow and outpace the supply for middle income New Yorkers.

Savoy is currently comprised of 1,802 residential units on approximately 10.5 acres of land. The Property benefits from an existing 40-year Article XI regulatory agreement through 2052. In exchange for a commitment to limit rents and the income of new tenants to 80% - 150% of the Area Median Income (“AMI”), Ownership receives a full real estate tax exemption and instead pays a 10% Shelter Rent Tax (less utilities). This long-term agreement enables annual tax savings in excess of $3 million.

As additional upside, current Ownership has negotiated the key terms and conditions of an amendment to the existing Article XI agreement that would allow for the creation of up to 598 new apartments at the Property through the conversion of 598 one-bedroom units into 1,196 studio apartments at varying levels of affordability. Furthermore, the site contains approximately 337,000 square feet of unused buildable air rights and has the opportunity to apply for an additional one million square feet of air rights for development.

Savoy presents investors with a generational opportunity to acquire a sizable asset in a fast-growing Manhattan submarket at a price that is significantly below replacement cost. A new owner can take advantage of the negotiated Article XI amendment, the excess air rights, the existing preferential rent gap, and several ESG initiatives to unlock additional value.

All inquiries should be directed to Cushman & Wakefield.