Rendering of the planned 18‑story, 24‑unit condominium at 171 E. 86th St.
Upper East Side, Manhattan, August 28, 2025
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.
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.
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.
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.
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.
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.
The construction loan is for $73,000,000 and was provided by Madison Realty Capital, arranged by Arrow Real Estate Advisors.
The sponsor and developer is ZD Jasper, a Long Island‑based firm that purchased the site in October 2023.
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.
Work is expected to be completed by late 2026.
Planned amenities include a fitness center, golf simulator, and a children’s room.
Not yet. Unit pricing and a formal sales launch will be announced as development milestones are met.
| 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 |
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