Tessler Developments signs $15.5M refi with Signature Bank for four retail properties in Flatiron District

Tessler Developments through the entity 260 Park Avenue South, LLC as borrower signed a refi loan with lender Signature Bank valued at $15.5 million for four retail condominium units at 260 Park Avenue South in Flatiron District, Manhattan.
The deal closed on January 10, 2023 and was recorded on January 23, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $18.8 million. The four properties have 15,169 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,021 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Tessler Developments was Yitzchak Tessler. The signatory for Signature Bank was Michael Riegler.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 260 Park Avenue South.

The property

The 260 Park Avenue South parcel has a total lot size of 5,528 square feet. The city-designated market value for the property in 2022 is $4.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. 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 $5 million on this tax lot.

The neighborhood

In Flatiron District, the majority, or 72 percent of the 23.7 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has the 10th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Flatiron District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 19th highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 260 Park Avenue South, PincusCo has identified the owners of five of the 50 commercial properties representing 125,947 square feet of the 1,041,986 square feet. The largest owner is Robert “Toshi” Kar Yuen Chan, followed by Portfolio3, LLC and then KLM Equities.
there are no active new building construction projects on this tax block.

The majority, or 91 percent of the 953,165 square feet of built space are office buildings, with mixed-use buildings next occupying 6 percent of the space.

Direct link to Acris document. link