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.
$73 Million Construction Loan Closed for 171 E. 86th St. Luxury Condo on the Upper East Side
A $73,000,000 construction loan has been arranged to build an 18‑story, 24‑unit luxury condominium at 171 E. 86th St. on Manhattan’s Upper East Side. The financing was provided by a private real estate lender and placed by a commercial real estate advisory team working on behalf of Long Island‑based developer ZD Jasper. The project is expected to total about 81,000 square feet, with construction due to finish in late 2026.
Top-line details
The loan covers ground‑up development costs as part of a project with an estimated total cost of roughly $112 million. The lower floors will include approximately 6,000 square feet of ground‑floor retail space that sources say has already been leased to a bank. Residential units will range from two‑ to five‑bedroom layouts, with two units per floor between the second and tenth floors and full‑floor apartments above.
Who arranged the financing
The financing was arranged by Arrow Real Estate Advisors. The team that negotiated the loan included the firm’s founder and managing partner, its senior vice president and an associate. The loan was secured on behalf of ZD Jasper, which purchased the site in October 2023 for $24.5 million from a prior owner.
Project program and amenities
The development will rise 18 stories and deliver 24 luxury condos spread across roughly 81,000 square feet. Planned resident amenities include a fitness center, a golf simulator and a children’s room. A project rendering has been produced showing the planned building massing and street presence.
Timing and market positioning
Construction is scheduled to complete by late 2026. The financing structure is designed to support the sponsor through construction and position the development for a sellout in Manhattan’s high-end condo market. Broker representatives noted that the site’s location on the Upper East Side contributed to lenders’ willingness to provide construction capital.
Related projects and financing context
The $73 million facility follows a separate financing secured by the same sponsor for a Long Island City condo project, where roughly $23.1 million was provided for a six‑story, 39‑unit building. The sponsor also has other active projects, including a 128‑unit multifamily building near Hudson Yards and a mixed‑use property in Long Island City acquired in 2024 for approximately $47 million.
Site history
The address at East 86th Street was long home to a well‑known hot dog and sandwich shop that closed a few months prior to the site sale in 2023. The new development will replace the low‑rise retail building that occupied the lot for decades.
Costs and pricing
While the total project budget is roughly $112 million, condo pricing for individual units has not yet been announced. Unit sizes are planned to vary from two to five bedrooms, and the building layout provides a mix of two units per floor on lower residential levels and full‑floor units above, intended to appeal to a range of luxury buyers.
What this means for the neighborhood
The project adds a small number of high‑end condominiums to a neighborhood that already features a mix of older apartment buildings and newer luxury towers. The inclusion of ground‑floor retail and on‑site amenities aligns with recent Upper East Side developments that combine residential units with neighborhood services.
Next steps
With financing in place, the developer plans to advance vertical construction and marketing efforts toward a projected late‑2026 completion. Additional funding, presale activity and market conditions over the next 18–24 months will shape the ultimate sales timeline and pricing for the units.
FAQ
Q: Who provided the construction loan?
A: A private real estate lender provided the $73 million construction loan, placed by a commercial real estate advisory firm on behalf of the developer.
Q: What will be built at 171 E. 86th St.?
A: An 18‑story luxury condominium building with 24 residential units and approximately 6,000 square feet of ground‑floor retail space.
Q: When will the project be finished?
A: Construction is expected to be completed by late 2026.
Q: How big is the project and what is the budget?
A: The development is planned at about 81,000 square feet with an estimated total project cost near $112 million.
Q: Are condo prices set yet?
A: Condo pricing has not been finalized and will be announced as the project progresses toward market launch.
Q: Does the project include amenities?
A: Yes. Planned amenities include a fitness center, a golf simulator and a children’s room.
Key features at a glance
| Feature | Detail |
|---|---|
| Loan amount | $73,000,000 |
| Address | 171 E. 86th St., Upper East Side, Manhattan |
| Building size | About 81,000 sq ft |
| Stories / Units | 18 stories, 24 luxury condos |
| Retail | ~6,000 sq ft ground‑floor space leased to a bank |
| Estimated total cost | Approximately $112 million |
| Completion | Late 2026 (target) |
| Unit mix | Two‑ to five‑bedroom units; two per floor on floors 2–10; full‑floor units above |
| 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 NY News
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