NEW YORK CITY-Investor Yitzchak Tessler has helped stave off foreclosure on a prime parcel of land on Madison Avenue here.
Tessler, working in partnership with property owner NMP Group, will pay off the debt on the property owed to Los-Angeles-based CIM Group, in a deal valued at more than $55 million, according to Crain's New York Business. Tessler and NMP Group will partner to develop what will likely be a 130,000 square-foot condo project at the site, according to John Stewart, an attorney for NMP Group.
"There is $55 million owed on the loan and interest due, but this site is worth $70 million or more so clearly it was worth the effort by NMP to work out a deal to hold onto it," Stewart says. "They invested a lot into it and unfortunately were set back by bad timing during the recession." See story in Crain's New York Business.
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