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 Backs $73M Construction Loan for 171 E. 86th St. Luxury Condo
A $73,000,000 construction loan has been arranged to build a new luxury condominium at 171 E. 86th St. on Manhattan’s Upper East Side. The financing was provided by Madison Realty Capital and was brokered by Arrow Real Estate Advisors on behalf of Long Island–based developer ZD Jasper. The loan covers a large portion of the cost to construct an 18‑story building with 24 condominium units.
Key deal facts up front
The project will rise to 18 stories and span roughly 81,000 square feet. Total project costs are estimated at about $112 million. The development is expected to be completed by late 2026. Ground‑floor retail space of about 6,000 square feet has already been leased to a bank, according to people familiar with the transaction.
Who arranged and who is borrowing
Arrow Real Estate Advisors negotiated the construction financing on behalf of ZD Jasper. The Arrow team that worked on the deal included founder and managing partner Morris Betesh, senior vice president Omar Ferreira and associate Jacob Petrovic. Madison Realty Capital provided the loan as the capital partner.
Project layout and amenities
The building will contain 24 luxury condominiums, with unit sizes ranging from two‑ to five‑bedrooms. The planned unit layout places two units per floor on the second through tenth floors and full‑floor units on the levels above. Amenities are planned to include a fitness center, a golf simulator and a children’s room. Condo pricing has not been finalized.
Context and recent activity
ZD Jasper purchased the site at 171 E. 86th St. in October 2023 for $24.5 million. The location was long known for housing a branch of a historic local eatery before that tenant closed a few months prior to the sale. The $73 million construction loan follows separate financing ZD Jasper secured for another condo project in Long Island City, and the developer has additional projects in its pipeline, including a multifamily building in the Hudson Yards area and a mixed‑use property in Long Island City.
Why the loan matters
The financing covers a large share of the construction budget and is structured to support the sponsor through the build period and into a sales phase. The lender indicated that the project’s location and the developer’s track record were central factors in extending the financing. The broker team described the capital and structure as aligning with the developer’s needs for construction and a path toward sellout.
Schedule and next steps
Ground‑up work is underway and the schedule targets completion by the end of 2026. With retail already leased and a financing package in place, the developer can continue vertical construction and marketing preparations. Final condo pricing will be released later as the project advances toward topping out and initial sales marketing.
What else to watch
Observers will watch how the building’s full‑floor units above the mid‑levels are priced once sales launch, how quickly the retail tenant occupies the ground floor, and how construction progresses toward the late‑2026 completion goal. The outcome will add to ongoing development activity on the Upper East Side and in nearby Manhattan neighborhoods.
FAQ
What is the size and scope of the loan?
The construction loan is $73,000,000 and is intended to fund the ground‑up development of an 18‑story, 24‑unit condo building at 171 E. 86th St.
Who provided the loan and who arranged it?
Madison Realty Capital provided the construction financing. Arrow Real Estate Advisors arranged the loan on behalf of developer ZD Jasper, with a team led by Morris Betesh and supported by Omar Ferreira and Jacob Petrovic.
When will the project be finished?
Construction is expected to be completed by late 2026.
How large will the development be?
The project will total about 81,000 square feet, including roughly 6,000 square feet of ground‑floor retail already leased to a bank.
How many and what type of units will the building contain?
There will be 24 luxury condominiums ranging from two‑ to five‑bedroom units. The layout calls for two units per floor from the second through the tenth floors and full‑floor units above those levels.
What amenities are planned?
Planned amenities include a fitness center, a golf simulator and a children’s room.
Is final pricing available?
No. Condo pricing has not yet been determined and will be announced closer to the sales launch.
Project at a glance
| Feature | Detail |
|---|---|
| Address | 171 E. 86th St., Upper East Side, Manhattan |
| Loan amount | $73,000,000 |
| Total project cost | About $112,000,000 |
| Developer / Borrower | ZD Jasper Realty |
| Lender | Madison Realty Capital |
| Broker | Arrow Real Estate Advisors (M. Betesh, O. Ferreira, J. Petrovic) |
| Stories / Units | 18 stories / 24 condominiums |
| Total square feet | About 81,000 sq ft |
| Retail | Approximately 6,000 sq ft leased to a bank |
| Completion target | Late 2026 |
| 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
