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.