Upper East Side, Manhattan, August 28, 2025
News Summary
Madison Realty Capital provided a $73 million construction loan to fund a ground-up 18-story luxury condominium at 171 E. 86th St. on Manhattan’s Upper East Side. Arranged by Arrow Real Estate Advisors for developer ZD Jasper, the financing supports an approximately 81,000-square-foot building with 24 units — two- to five-bedroom residences — and about 6,000 square feet of ground-floor retail leased to a bank. Planned amenities include a fitness center, golf simulator and children’s room. Construction is underway with completion targeted for late 2026; condo pricing and sales timing will be announced as the project progresses.
Upper East Side condo gets $73M construction loan
A $73 million construction loan has been arranged to build an 18‑story luxury condominium at 171 E. 86th Street on Manhattan’s Upper East Side. The financing will fund a ground‑up project that is planned to deliver 24 high-end residences, roughly 81,000 square feet of space and about 6,000 square feet of ground‑floor retail that is already leased to a bank. Work is expected to finish by late 2026.
Key financing and parties
The loan was provided by a real estate private equity lender and was brokered by a commercial real estate advisory firm on behalf of the developer, ZD Jasper Realty. The advisory team included the firm’s founder and managing partner and two senior staff members who negotiated the financing terms and structure. The total project cost is estimated at about $112 million.
Project basics
The tower will rise 18 stories and house 24 condominiums. Units will range from two‑ to five‑bedrooms. The floor plan is set up with two units per floor from the second through tenth floors, and full‑floor layouts above those levels. Planned resident amenities include a fitness center, a golf simulator and a children’s room.
Size, timeline and retail
The building is expected to total about 81,000 square feet. Ground‑floor retail of roughly 6,000 square feet has been leased to a bank, offering an active street‑level presence. Construction is slated to wrap up by late 2026, with condo pricing still to be determined.
Context and recent activity
This loan follows other recent financing secured by the developer for projects in the region, including roughly $23.1 million in funding for a separate condo development in Long Island City planned to rise six stories with 39 units. The developer also has other projects in progress, including a 128‑unit multifamily building near Hudson Yards and a mixed‑use property in Long Island City acquired in 2024.
Site history
The site at 171 E. 86th Street was purchased in October 2023 for $24.5 million from the prior owner. The location had been home to a well‑known hot dog and sandwich shop for many decades before that restaurant closed months prior to the sale.
Why the deal matters
From a market standpoint, the combination of an Upper East Side address, a small number of large units and on‑site retail can make the building attractive to buyers seeking space and convenience. The arranged loan aims to carry the sponsor through construction and position the development for a full market launch and sellout once units are complete.
What remains uncertain
Exact condo pricing has not been announced. Timing, while targeted for late 2026 completion, can still shift depending on construction pace, supply chain factors and local approvals. The marketing strategy and sales launch date have not been released.
Who to watch on this project
- Developer: ZD Jasper Realty
- Capital provider: Real estate private equity lender
- Capital broker: Arrow Real Estate Advisors team, led by the firm’s founder and two senior negotiators
Financing in the local market
Construction and refinancing activity remains active across Manhattan neighborhoods. Lenders and debt funds continue to provide large loans for both new condo projects and rental properties, including high‑value transactions in nearby areas. Developers are moving on projects that combine residential units with street‑level retail and amenity packages buyers expect in high‑end New York buildings.
Next steps for the project
With construction financing in place, the developer will proceed with full construction work, tenant fit‑out of the bank retail space and later with marketing and sales. Buyers and brokers can expect unit prices and a formal sales launch to be announced as construction milestones are reached.
Frequently Asked Questions
How large will the new building be?
The building is planned to be 18 stories and about 81,000 square feet in total.
How many condos will there be?
The project will include 24 luxury condominium units ranging from two to five bedrooms.
Who provided the construction loan?
A real estate private equity lender arranged a $73 million construction loan for the development.
When will construction be finished?
Construction is expected to be completed by late 2026, subject to normal project risks.
Will there be retail space?
Yes. About 6,000 square feet of ground‑floor retail has been leased to a bank.
Project at a glance
| Feature | Detail |
|---|---|
| Address | 171 E. 86th Street, Manhattan |
| Loan amount | $73,000,000 construction loan |
| Developer | ZD Jasper Realty |
| Stories / Units | 18 stories / 24 luxury condominiums |
| Total area | About 81,000 square feet |
| Ground-floor retail | ~6,000 sq ft leased to a bank |
| Estimated project cost | About $112 million |
| Projected completion | Late 2026 |
| Unit mix | Two- to five‑bedroom units; two per floor on floors 2–10; full‑floor units above |
| Planned amenities | Fitness center, golf simulator, children’s room |
Deeper Dive: News & Info About This Topic
Additional Resources
- ConnectCRE: Madison Realty Capital provides $73M construction loan for 171 E. 86th St.
- Wikipedia: Upper East Side
- Crain’s New York: ZD Jasper secures financing for Upper East Side condos (former Papaya King site)
- Google Search: ZD Jasper 171 E 86th St
- Bisnow: This week’s NY deal sheet — Rybak scores construction loan for UES condo building
- Google Scholar: construction loan residential New York
- Commercial Observer: Affinius Capital $79M construction loan for Upper East Side apartments
- Encyclopedia Britannica: Upper East Side
- East Side Feed: City Council secures over $20 million for Upper East Side improvements
- Google News: 171 E 86th St
Author: Construction CA News
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