NEW YORK | 172 Madison Ave | 448 FT | 33 FLOORS


Tessler lines up $140M financing for NoMad condo project

Construction on 70-unit tower to launch in June

May 07, 2014 04:55PM
By Julie Strickland

From left: Yitzchak Tessler and 172 Madison Avenue

Developer Yitzchak Tessler secured approximately $141 million in financing for a planned condominium development at 172 Madison Avenue, The Real Deal has learned.

Boutique advisory firm Maverick Capital arranged the high-leverage construction loan, which accounts for roughly 85 percent of the projects total projected cost of $160 million, Managing Partner Adi Chugh told The Real Deal.

“Yitzchak is known for buying stuff way below market — he doesn’t get swayed by most people who say ‘I can sell everything for $3,000 per square a foot,” Chugh said. “He is very realistic in his buys, which makes him sleep well at night and makes financing attractive for lenders.”

Tessler confirmed that plans for the 110,000-square-foot site call for a condominium tower at least 40 stories high with 70 units — a slight uptick from the previously reported 31-story, 67-unit plan exam details. The property will offer a mix of one-, two-, three- and four-bedroom units, though an exact breakdown has not yet been determined. There will be six penthouse units as well, each roughly 4,000 square feet with 18-foot high ceilings, and featuring 360-degree views. The other apartment units will have 11-foot ceilings, Tessler said. Building amenities, to be situated on two basement floors, are to include a “long” swimming pool, gym, recreation room, bicycle room, storage and a pet wash room.

Construction is slated to kick off in June, and is scheduled for completion within 24 months.

Tessler bought the 110,000-square-foot site at the corner of Madison Avenue and 33rd Street in September for $55 million out of a bankruptcy sale. The developer agreed to pay off debt and fees owed to CIM Group, which had previously partnered with NMP with a deal to develop the site. NMP bought the site in 2007 but fell into default by 2011.


Semi-Revealed: 172 Madison Avenue


172 Madison Avenue

172 Madison Avenue has seen several proposals come and go, but now, drawings have finally been posted for the future 31-story building, which sits just above 33rd Street. Permits, partially approved earlier this month, list Karl Fischer as the architect of record, and Yitzchak Tessler as the developer. The images come courtesy of a tipster, who notes that excavation has also begun.

172 Madison Avenue

In total, the tower will span 129,442 square feet, including a 4,523 square foot commercial component. The remainder will be split between 67 residences, and with floor-plans averaging approximately 2,000 square feet, condominiums would appear to be likely.

172 Madison Avenue is located in a prime corridor for new construction, just to the north of 160 Madison Avenue, which recently topped-out. Tessler’s building will be of a slightly smaller scale, but the design for 172 should be more appealing from a pedestrian perspective. A short base manages to keep the street-wall semi-intact, and setbacks for the bulk of the tower are minor. Zoning diagrams illustrate additional facade details, though intricacies have yet to be fully illuminated by actual renderings.

172 Madison Avenue

172 Madison’s highest occupied floor will stand 391 feet tall, while the tower’s mechanicals — which surround a rooftop pool — will extend the pinnacle to just shy of 450 feet. Ceiling heights will start at 11 feet, increasing to 18 feet for the top five floors.

Whether Karl Fischer serves as the design architect remains to be seen, but the on-site drawing shows significant changes compared to previous proposals. With dirt moving and partial permit approvals secured, construction seems to be a go, though no formal completion date has been announced.


Credit: LondoniumLex









Great photo, VG!


The glass is ok.






I hope the two, junky, lowrise buildings on the corner across the street come Down soon!



I look forward to seeing the vertical black granite applied to the surface.





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