The Real Deal New York

Corcoran takes over Tessler’s 172 Madison

Compass resigned the $300M condo this month
By E.B. Solomont | March 16, 2018 11:00AM

172 Madison Avenue, Carrie Chiang, Janet Wang and Yitzchak Tessler

The Corcoran Group’s Carrie Chiang and Janet Wang are taking over sales at Yitzchak Tessler’s $300 million condominium development after Compass walked away from the project earlier this month.

The developer has 32 units out of 72 left to sell at 172 Madison, including four penthouses and a townhouse unit that were most recently asking between $13 million and $15 million, according to StreetEasy.

This is the third marketing team on the project, which kicked off sales in 2015 with Keller Williams NYC and Tessler’s son, Efraim Tessler, a Keller Williams broker. Compass’ new development team, headed by Billy Goldstein, severed ties with Tessler roughly a year after replacing Keller Williams on the project.

“At Compass, we put our people first. At the request of our team, we made the unusual decision to resign the project,” said a company spokesperson, who did not comment further.

Sources told The Real Deal the firm was at odds with Tessler on pricing — and that the developer probably did not want to reduce prices despite a slowdown in the luxury market.

Closings at the 33-story glass condo began in June, but initial sales data showed that buyers received an average discount of 9.2 percent. At the time, Tessler said the opening of the Karl Fischer-designed building would spur sales.

So far, sales have averaged around $2,600 per foot, according to StreetEasy.

A two-bedroom unit, listed by Chiang and Wang, is currently asking $3.425 million (or $2,315 per foot). That’s up from the original price of $2.975 million in 2015. Compass had the 1,479 square-foot-pad listed for $3.325 million until January.

Tessler is projecting a $308.61 million sellout at 172 Madison. Last year, the developer closed a $164.3 million condo inventory loan, obtained from private equity firm TPG and Deutsche Bank.