The Real Deal New York

Tessler gets $164M condo inventory loan at 172 Madison

TPG, Deutsche Bank financing the 33-story project
By Hiten Samtani | March 22, 2017 04:55PM

172 Madison Avenue and Yitzchak Tessler

Yitzchak Tessler’s Tessler Developments closed on a $164.3 million condominium inventory loan for its project at 172 Madison Avenue, property records show.

The lenders on the deal were private equity firm TPG and Deutsche Bank, sources told The Real Deal.

Adi Chugh

Adi Chugh of Maverick Commercial Properties (formerly Maverick Capital Partners) brokered the financing. He could not be reached for comment, nor could representatives for Tessler. Condo inventory loans are secured by a project’s inventory of units.

The 33-story, Karl Fischer-designed property at 172 Madison is almost complete, with a temporary certificate of occupancy expected this spring, according to a source familiar with the property. The projected sellout as of January, according to documents filed with the New York Attorney General, is $307.7 million for its 72 units. The building includes a little over 4,300 square feet of ground-floor retail space,  which has 18-foot-high ceilings, and another 2,000 square feet of below-grade space.

Compass took over sales at the project from Keller Williams NYC earlier this month. Billy Goldstein, Compass’ managing director of new development, said about 60 percent of the units are under contract. Current listings are averaging about $2,200 per square foot, according to StreetEasy.

In May 2014, Tessler secured about $141 million in financing for the project.