Arrow Arranges $73M Construction Loan for 18-Story Upper East Side Condominium

171 East 86th Street, Upper East Side, Manhattan, October 1, 2025

News Summary

A $73 million construction loan has been arranged to fund the ground-up development of an 18-story luxury condominium at 171 East 86th Street on Manhattan’s Upper East Side. The financing was provided by a private lender and negotiated by Arrow’s advisory team, including its founder and senior staff. Sales and marketing will be handled exclusively by a third-party development marketing firm. The deal follows related activity by the same advisory team, which recently arranged a $320 million loan for a large office-to-residential conversion. Construction planning will proceed under the loan terms as marketing efforts prepare for future sales.

Arrow Real Estate Advisors Secures $73M Construction Loan for 171 East 86th St. Luxury Condominium

A new 18-story luxury condominium at 171 East 86th Street on the Upper East Side moved forward after a $73 million construction loan was arranged in Manhattan. The financing was provided by Madison Realty Capital and was negotiated by Arrow Real Estate Advisors on behalf of sponsor Z.D. Jasper Realty.

Key deal details

The funding will support the ground-up development of the 18-story residential tower targeted to deliver residences intended to set a new benchmark for luxury living in the neighborhood. The marketing and sales effort for the project will be handled exclusively by Brown Harris Stevens Development Marketing.

Who negotiated the loan

Arrow Real Estate Advisors, a real estate finance advisory firm, led the transaction. The team that negotiated the 171 East 86th Street financing included founder and managing partner Morris Betesh, senior vice president Omar Ferreira, and associate Jacob Petrovic. The firm structured the loan to support construction and to position the sponsor for a successful sellout.

Project positioning and neighborhood context

The development is positioned as a defining new address on the Upper East Side, combining Z.D. Jasper Realty’s track record in condominium projects with the neighborhood’s cultural institutions, top schools, and premier retail. The project is intended to raise the local standard for high-end residential offerings.

Related financing activity

In a separate assignment, Arrow Real Estate Advisors also arranged a $320 million construction loan for the conversion of 80 Pine Street, a 41-story office tower in Manhattan’s Financial District. That financing was provided by BridgeCity Capital and Deutsche Bank to support a transformation that will convert large portions of the building into residential units.

The 80 Pine Street conversion will create roughly 713 residential units within about 1.2 million square feet and follows nearly $100 million in recent renovations. The property occupies a full city block and was originally constructed in 1960; it was acquired by Bushburg Properties in September 2024. The repositioning plan seeks to blend residential, office and retail uses to create a mixed-use community hub in a historically commercial corridor.

Financing teams on 80 Pine Street

The Arrow team for the 80 Pine Street financing included Morris Betesh alongside senior staff members Alex Bailkin and Matt O’Hanlon. The deal underscores growing interest in office-to-residential conversions supported by incentive programs that encourage residential repositioning.

How the announcement was shared

The item was posted on a commercial real estate news website that offers features including sign-up and subscription options, a contact menu, daily news alerts, and advertising opportunities. The site also lists on-demand online courses that provide continuing education credits for brokers, attorneys, appraisers, and architects, and it invites readers to sign up for short daily summaries by email.

What this means for the market

The two financings highlight active capital deployment in both new ground-up luxury condominium construction and large-scale office-to-residential conversions. Lenders and sponsors continue to align around projects that respond to strong demand for housing in Manhattan neighborhoods and that leverage design, location, and incentive structures to unlock value.

How to follow up

For professionals tracking commercial real estate transactions, the announcement includes contact and subscription options on the hosting site as well as prompts for reader interaction. The hosting platform also provides categorized coverage across geographic and topical beats such as Midtown, Downtown, Uptown, Development, Financing, and others.

FAQ

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Key features at a glance

Deeper Dive: News & Info About This Topic

Additional Resources

• Multi-Housing News: Bushberg secures $320M for partial Manhattan conversion
• Wikipedia: Adaptive reuse
• YieldPro: 300 East 42nd Street
• Google Search: 300 East 42nd Street Manhattan conversion
• ConnectCRE: Deutsche Bank lends $320M on 80 Pine St residential conversion
• Google Scholar: 80 Pine Street conversion Manhattan
• CoStar: Starwood provides $350M loan to Rafael Vinoly’s luxury condo tower in Manhattan
• Encyclopedia Britannica: Rafael Vinoly
• Alternatives Watch: Northwind Group originates $90M loan for Manhattan office building conversion
• Google News: Manhattan office-to-residential conversion 2025

Author: Construction NY News

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