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 Arranges $73M Construction Loan for 18-Story Condominium at 171 East 86th St.
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 was arranged by a real estate finance advisory firm on behalf of the project sponsor.
Key deal details
The loan supports a full ground-up build for the tower, which the sponsor positions as a major new residential offering in the neighborhood. The advisory team that negotiated the transaction included the firm’s founder and managing partner along with senior and associate staff. Sales and marketing for the building will be handled exclusively by a third-party development marketing firm.
Why the project matters
The sponsor frames the development as marrying its history of successful condominium projects with the Upper East Side’s mix of cultural institutions, top schools and retail. The project is described by its backers as intended to deliver residences that raise the standard for luxury living in the area and to become a notable new address on the neighborhood’s residential map.
Leadership and negotiation
The negotiation team for the loan included the advisory firm’s founder and managing partner, a senior vice president and an associate. The transaction was completed on behalf of the named sponsor and required structuring that the advisory team says aligns capital with construction timing and market positioning to support the sponsor through delivery and eventual sales.
Related financing activity
The advisory firm also recently arranged a separate, larger construction loan for a major office-to-residential conversion elsewhere in Manhattan. That transaction totaled approximately $320 million and will support the transformation of a 41-story office tower into a mixed-use residential building with more than 700 units and roughly 1.2 million square feet of total space. Lenders on that deal included a pair of institutional lenders, and the sponsor acquired the office tower in late 2024 following nearly $100 million in renovation work. The office tower sits on a full city block and was originally constructed in 1960; the conversion plan aims to create a mixed-use community hub blending residential, office and retail uses and leverages available tax incentive programs.
Market context and lender view
Lenders provided the construction financing after assessing the sponsor’s development track record and the site’s location. The advisory firm highlighted the importance of pairing the right capital partner with a thoughtful financing structure to give the sponsor the runway needed during construction and to position the project for a successful sales campaign once units are delivered.
Where readers can take action
The online platform that published the item offers standard site features for reader engagement, including an option to add comments, a quick and free sign-up flow, subscription choices and a login area for returning users. The site also lists options to get daily news emails, advertise, and access a section focused on finance and capital. Continuing education courses for brokers, attorneys, appraisers and architects are also available through the site in on-demand video and written formats that provide industry credits.
What’s next
Construction financing is now in place and construction planning is expected to proceed under the terms of the loan. Sales and marketing efforts will move forward under the exclusive marketing firm retained by the sponsor. The larger context of recent financing activity for conversions and new construction in Manhattan suggests continued appetite among private capital sources for projects that combine experienced sponsors and strong site positioning.
FAQ
What is the loan amount and purpose?
The loan totals $73 million and is designated to fund the ground-up construction of an 18-story luxury condominium at 171 East 86th Street.
Who provided the financing and who arranged it?
A private real estate lender provided the construction financing. A real estate finance advisory firm arranged the loan on behalf of the project sponsor.
Who is the sponsor and who will handle sales?
The loan was negotiated on behalf of the named sponsor. A development marketing firm has been retained to handle exclusive sales and marketing for the building.
Are there related projects tied to the same advisory team?
Yes. The advisory firm also arranged a separate $320 million construction loan for a large office-to-residential conversion in Manhattan that will deliver more than 700 residential units and roughly 1.2 million square feet.
How can I get updates?
The publishing site offers email sign-ups for daily news and shorter email updates, subscription options, and an online account area for registered users.
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Key project features
| Feature | Details |
|---|---|
| Project Address | 171 East 86th Street, Upper East Side, Manhattan |
| Building Type | 18-story luxury condominium, ground-up development |
| Construction Financing | $73,000,000 arranged by a real estate finance advisory firm |
| Lender | Private real estate capital provider |
| Negotiation Team | Founder and managing partner; senior vice president; associate from the advisory firm |
| Sales & Marketing | Exclusively handled by a third-party development marketing firm |
| Related Deal | $320,000,000 construction loan for a 41-story office-to-residential conversion (approx. 713 units, 1.2M sq ft) |
For further site-level features, users can access comment tools, account sign-up, subscription options, daily news delivery and continuing education resources for industry professionals.
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 FL News
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