Arc Pe files $44M pre-foreclosure at Tessler Developments Midtown South condo tower

UPDATED 11:39 a.m., March 19, 2026: An affiliate of Florida-based Arc Pe filed a $44 million judicial pre-foreclosure related to unsold condominium units at Tessler Development’s 172 Madison Avenue in Midtown South, Manhattan.

Case LINK
Arc Pe filed the complaint yesterday in New York State Supreme Court in Manhattan. The filing comes a little more than two months since Tessler Developments put the units into bankruptcy protection on June 4 to block a UCC foreclosure auction. That bankruptcy case remains ongoing. Case 24-22500-pb LINK

According to the new state court complaint, “As of March 31, 2024, the following amounts are due and owing to Plaintiff under the Loan Documents, subject to additional charges and fees in accordance with the Loan Documents (the “Indebtedness”); (a) Unpaid principal balance of $43,588,340.55; (b) Interest at Note Rate in the amount of $11,128,514.37; (c) Interest at Default Rate in the amount of $7,185,050.73; (d) Accrued Late Charges of $475,786.86; (e) Unpaid Charges of $63,151.02.”

The June bankruptcy was filed the day of a scheduled UCC auction, in which note holder Arc Pe sought to foreclose on $62 million in debt it holds secured by 10 unsold condominium units and two commercial condo units in the building. The Real Deal reported in April on the UCC auction, noting the $62 million was composed of $44 million in principal and $18 million in interest.

Yitzchak Tessler’s Tessler Developments built the condo high-rise with 72 residential units and two commercial units.

The bankruptcy filing reveals the investors in the project, with Tessler owning 10 percent through the entity Madison YT, LLC; Natalia Pirogova owning 40 percent through the entity 172 Madison NP Member, LLC; a private fund managed by New Legacy Group called Arch 33rd Street, LLC with 15 percent, recently valued at $5.7 million ; the entity Livostin LLC with 10 percent; and Alex Fleyshmakher’s Samigor Development Group Corp. with 25 percent (the company Highscore Capital won a $9.5 million judgment against Fleyshmakher, through the case 654004/2020).

In addition to cases such as Highscore Capital’s, the property is directly the subject of two state court cases according to the bankruptcy filing, one in the Appellate Division, 1st Department, PJSC National Bank Trust v. Natalia Pirogova et al 2022-04001; and the other case is Natalia Pirogova v. Madison YT, LLC et al 652764/2020.

David Goldwasser of FIA Capital Partners, a bankruptcy specialist, filed the petition as the company’s chief restructuring officer. Yitzchak Tessler is making the payments to Goldwasser, the filing says.

The block

On this tax block, 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 APF Properties, followed by Feil Organization and then GFP Real Estate. 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 owner

The owners according to the Department of Housing Preservation and Development includes Daniel Bekteshi, head officer and Larry Paparniku, site manager. The business entity is 172 Madison Avenue Condominium.

The surrounding

Within a 400-foot radius of 172 Madison Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months. Of those three items, three were loans above $5 million totaling $33.2 million. The most recent of the three was GFP Real Estate in which borrowed $16 million from Apple Bank for Savings secured by the 113,182-square-foot, nine-unit rental (C7) on 175 Madison Avenue and one other property on March 10, 2023.

Correction: An earlier version of this post identified the company Arc Pe as Arc Re.

Direct link to the property’s ACRIS page and link to DOB NOW portal.