ARC Pe obtains $37.9M in debt for bankruptcy acquisition of resi condos on Park Avenue South

UPDATED 3:50 p.m., March 19, 2026: Florida-based ARC Pe through the entity Palm Avenue Hialeah Trust as borrower signed an acquisition loan with lender Centennial Bank  valued at $37.9 million for 10 unsold residential condominium units  at 172 Madison Avenue in Park Avenue South, Manhattan. Tessler Developments lost the condo units in a bankruptcy.
The deal closed on March 10, 2026 and was recorded on March 18, 2026.
The signatory for ARC Pe was John Olsen. The signatory for Centennial Bank was Michael Walsh.

Violations and lawsuits

The properties were involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $44 million commercial foreclosure concerning a loan filed on August 22, 2024, by Arc Re against Tessler Developments and Yitzchak Tessler. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by MADISON 33 OWNER LLC to create 69 residential units and 2 commercial units in a building at 172 Madison Avenue in Park Avenue South, Manhattan, called 172 Madison Avenue Condominium that has a $307.2 million sellout, according to an November 12, 2014 submission to the New York State Attorney General. The principal of the sponsor, MADISON 33 OWNER LLC, was Yitzchak Tessler.

The block

On the tax block of 172 Madison Avenue, PincusCo has identified the owners of 10 of the 22 commercial properties representing 1,161,958 square feet of the 1,949,099 square feet. The largest owner is Pgim, followed by Feil Organization and then APF Properties.
On the tax block, there was one new building construction project filed totaling 67,003 square feet. It is a 82-unit, 67,003 square-foot residential (R-2) building submitted by Pi Capital Partners and filed by James Pi with plans filed July 26, 2019 and it has not been permitted yet.

The majority, or 74 percent of the 1.9 million square feet of built space are office buildings, with elevator buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Arc Pe owned at least one commercial property with three residential units in New York City with 5,460 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

Correction: A prior version of this post stated ARC Pe acquired the commercial properties, but it only acquired the residential units. Global Asset Properties acquired the retail units.

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