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.
Madison Realty Capital provides $73 million construction loan for new Upper East Side condo at 171 E. 86th St.
Key financing underwrites an 18‑story, 24‑unit luxury condominium project expected to deliver by late 2026
What happened: A $73,000,000 construction loan has been arranged to fund the ground-up development at 171 E. 86th St. on Manhattan’s Upper East Side. The financing was placed by Arrow Real Estate Advisors on behalf of Long Island‑based developer ZD Jasper, with capital provided by Madison Realty Capital, a real estate private equity firm.
Why it matters: The loan supports an 18‑story luxury condominium building that will total roughly 81,000 square feet and deliver 24 residential units. The deal represents a sizable portion of the overall project, which has an approximate total cost of $112 million. Construction is expected to continue through late 2026, positioning the development for sales thereafter.
Project details
The building will rise 18 stories and contain 24 condominiums ranging from two- to five‑bedroom layouts. The typical floor plan places two units per floor on the second through tenth stories, while floors above those will be configured as full‑floor units. Planned resident amenities include a fitness center, a golf simulator, and a children’s room. A published rendering shows the planned exterior and massing for the site.
The development will also include ground‑floor retail of about 6,000 square feet, which sources say has already been leased to a bank. Condo pricing has not been finalized.
Financing and brokerage
Arrow Real Estate Advisors negotiated the construction financing on behalf of the sponsor. The Arrow team that led negotiations included founder and managing partner Morris Betesh, senior vice president Omar Ferreira, and associate Jacob Petrovic. The brokerage noted that the financing structure is intended to support the sponsor through construction and position the project for a successful sellout once units come to market.
Madison Realty Capital, which provided the loan, was represented in public materials by its leadership team. The firm characterized the investment as consistent with backing projects that reinforce the residential market in the neighborhood.
Site history and developer activity
ZD Jasper acquired the site in October 2023 from a prior owner for about $24.5 million. The address had been home to a long‑running local eatery for decades before the space closed months prior to the sale.
This construction loan follows other recent capital activity by ZD Jasper. Earlier financing included roughly $23.1 million of funding from Bridge City Funding for a separate condominium project at 37‑20 Crescent St. in Long Island City, a six‑story building planned to contain 39 residential units. ZD Jasper also has other projects in its pipeline, including a 128‑unit multifamily building at 430 W. 37th St. in the Hudson Yards area and a mixed‑use development it bought in 2024 for $47 million in Long Island City.
Timing and next steps
Construction is already underway and the developer anticipates completing work by late 2026. With the construction loan in place, the project will move through the remaining build‑out phases and toward marketing and sales of the condominiums. Final unit pricing and sales schedules will be announced as the project advances.
What to watch
- Sales pricing and launch timing for the 24 condos, which will determine market reception.
- Lease activation and tenant fit‑out of the ground‑floor retail space leased to a bank.
- Construction milestones toward the late‑2026 completion target.
- Additional capital or refinancings that may be sought as the building approaches stabilization and sales.
FAQ
What is the loan amount and who provided it?
The construction loan is for $73,000,000 and was provided by Madison Realty Capital, arranged by Arrow Real Estate Advisors.
Who is developing the project?
The sponsor and developer is ZD Jasper, a Long Island‑based firm that purchased the site in October 2023.
What will be built at 171 E. 86th St.?
An 18‑story luxury condominium building totaling about 81,000 square feet with 24 units, plus ground‑floor retail of roughly 6,000 square feet.
When will construction finish?
Work is expected to be completed by late 2026.
What amenities are planned?
Planned amenities include a fitness center, golf simulator, and a children’s room.
Has pricing for condos been released?
Not yet. Unit pricing and a formal sales launch will be announced as development milestones are met.
Project at a glance
| Feature | Detail |
|---|---|
| Address | 171 E. 86th St. |
| Loan amount | $73,000,000 |
| Lender | Madison Realty Capital |
| Broker | Arrow Real Estate Advisors (team: Morris Betesh, Omar Ferreira, Jacob Petrovic) |
| Developer | ZD Jasper |
| Stories | 18 |
| Units | 24 condominiums (2–5 bedrooms) |
| Total area | ~81,000 sq ft |
| Estimated project cost | ~$112 million |
| Ground‑floor retail | ~6,000 sq ft, leased to a bank |
| Completion target | Late 2026 |
| 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
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