Insignia, Max Capital to develop 2 buildings.

The co-investment division of Insignia Financial Group has joined with Max Capital led by principal Adam Hochfelder and developer, Yitzchak Tessler of Linjan Associates, LLC to redevelop two buildings in New York's Flatiron district, formerly owned by the United Federation of Teachers (UFT).

260 Park Avenue South and 48 E. 21st St., which will share a connecting lobby, will both be converted into an 86unit, two-building luxury residential condominium complex. Construction will begin when the UFT vacates the premises they have currently leased back, in 2003. Insignia Douglas Elliman, the city's largest residential real estate brokerage firm, will handle the sales and marketing of the condominiums.

"We are very excited to partner with Max Capital in this endeavor," said Jeffrey Goldberg executive vice president of Insignia's co-investment group. "Since having sold our investment late last year in Fresh Meadows A partments, the 140-building residential housing complex in Queens, we have been anxious to add another New York project to our portfolio. We are delighted to have a foothold in New York again."

According to Debra Botzenhart, managing director in the group, "This redevelopment is consistent with our strategy to pursue equity investments by joint venturing with partners, where we can perform value-added services. We are looking for-ward to enhancing-our relationship with Max Capital, as well as being able to generate additional revenues by using Insignia Douglas Elliman's residential expertise to assist in designing a world class condominium development"

"From our perspective, it's a terrific advantage to have Insignia on board as co-investor and marketing agent. We expect this to be the first of many joint ventures together," said Anthony Westreich of Max Capital.

260 Park Avenue South, located on the southwest corner of Park Avenue and 21st Street, is an 82,200-SF 8-story property. The 12-story property at 48 East 21st St. abuts 260 Park Ave. to the west and consists of 123,023 SF.

The redevelopment team consists of: Yitzchak Tessler, Linjan Associates LLC, developer; Karl Fischer Architects, architect; and RC Dolner Construction, construction manager. Tessler's resume includes the development of high-end residential projects such as 66 Leonard Street and 150 Nausau St. Pre-construction initiatives are now underway and the completion is anticipated in the Summer of 2004.

The completed condominiums will offer: elegant public areas, onsite parking for approximately 100 cars, 24-hour doorman service, a variety of floor plans for 1, 2 and 3-bedroom apartments ranging from 900 to 3,000 square feet with ceiling heights of 13' and up.