New York real estate developer Yitzchak Tessler has raised $141 million in financing for a new condominium complex at Manhattan’s 172 Madison Avenue.
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After acquiring 172 Madison Ave on the corner of 33rd Street last fall for $55 million from its bankrupt owners, New York real estate developer Yitzchak Tessler is ready to move forward with his plans to build a forty story, 110, 000 square foot, 70 unit condominium residential building on the site. There will be a variety of one to four bedroom units with eleven foot high ceilings and six penthouses, each with about 4, 000 square feet of space, eighteen foot high ceilings and panoramic views. With a June start date, construction is expected to take twenty four months.
The building’s two basement floors will have a swimming pool, exercise room, recreation room, storage facilities and even a room to wash pets. Originally, Tessler only planned for a 31 story 67 unit building.
The money, which is roughly 85 % of the $161 million estimated cost of the project, was provided in a loan from Maverick Capital Partners.
Born in Romania, Yitzchak Tessler owns and operates Tessler Developments LLC, a New York based company which specializes in the construction of luxury buildings which was founded ten years ago. Mr. Tessler began his business career 30 years ago in the diamond industry, rising to be president of Transvaal diamonds which became the world’s number one diamond manufacturer.
Tessler Developments is currently involved in various projects, including seven residential buildings throughout Manhattan and two student housing facilities. Then there are two jewish communal projects, a Yeshiva and a pre-school. It operates WBB Construction, its in house firm which does the actual construction on its projects.
The managing partner of Tessler Developments, Adi Chug, had this to say about Tessler in a statement to 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. He is very realistic in his buys, which makes him sleep well at night and makes financing attractive for lenders.”
Maverick Capital Ltd. is an employee owned hedge fund sponsor. The firm provides its services to pooled investment vehicles and invests in the public equity markets of the United States. Maverick Capital was founded in 1990 and is based in Dallas, Texas with additional offices in New York, Conshohocken, Pennsylvania, San Francisco, and Plymouth Meeting, Pennsylvania.