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.
A $73,000,000 construction loan has been secured for the ground-up development at 171 E. 86th St. on Manhattan’s Upper East Side. The financing was arranged by a brokerage team on behalf of the project sponsor and provided by a private real estate equity firm. The development will rise 18 stories, deliver 24 luxury condominiums, and is expected to finish construction by late 2026.
The loan supports a full ground-up build estimated to total about 81,000 square feet with an overall project cost near $112 million. Funds are intended to carry the sponsor through construction and position the development for sales after completion.
The building will contain 24 condominium units ranging from two- to five-bedrooms. Unit layout calls for two units per floor on the second through tenth floors, with full-floor residences on the upper levels. Planned amenities include a fitness center, a golf simulator, and a children’s room. A published rendering of the project is available.
The development includes ground-floor retail of about 6,000 square feet that has already been leased to a bank, according to sources familiar with the deal. The site had been home to a branch of a longtime local eatery that closed a few months before the property changed hands.
The sponsor acquired the lot in October 2023 for approximately $24.5 million and is a regional developer with several active projects. Other properties in its pipeline include a mid-rise condominium in Long Island City and a larger multifamily development near Hudson Yards, as well as a mixed-use holding purchased in 2024.
The financing was negotiated by a brokerage team that included the firm’s founder and managing partner, a senior vice president, and an associate. The loan was provided by a private equity real estate lender whose co-founder and senior leadership supported the investment, citing the neighborhood’s strong market position and the sponsor’s track record as key factors in the decision.
The construction loan follows other recent financing won by the sponsor, including an earlier package for a Long Island City condo project. The sponsor’s broader pipeline spans multiple boroughs and product types, reflecting a period of steady lending for well-positioned Manhattan and outer-borough developments.
Construction is slated to wrap up in late 2026. Condo pricing has not yet been set, but the financing structure is designed to carry the project through construction and into an active sales phase. Market observers say the Upper East Side remains one of the more sought-after neighborhoods on the island, which could help absorption once releases begin.
The deal highlights ongoing capital flow into Manhattan housing development despite a cautious lending environment. The combination of a significant construction loan, a well-located site, and pre-leased retail illustrates how lenders and sponsors are structuring projects to reduce risk while adding new luxury housing inventory in established neighborhoods.
Work will continue on site through the coming months with milestone-driven draws tied to construction progress. Marketing and final pricing for units are expected to be announced closer to topping out and initial occupancy dates.
The construction loan totals $73,000,000 and was provided by a private real estate equity lender.
The development is at 171 E. 86th St. on the Upper East Side and will include an 18-story tower with 24 condominiums, about 81,000 square feet of space, and roughly 6,000 square feet of ground-floor retail leased to a bank.
Construction is expected to be finished by late 2026.
Units will range from two- to five-bedroom layouts, with two units per floor on lower levels and full-floor units above.
A real estate brokerage team negotiated the financing on behalf of the sponsor; the team included the firm’s founder and managing partner, a senior vice president, and an associate.
| Feature | Detail |
|---|---|
| Address | 171 E. 86th St., Upper East Side, Manhattan |
| Loan amount | $73,000,000 |
| Lender | Private real estate equity firm |
| Borrower / Sponsor | Regional developer with multiple active projects |
| Stories | 18 |
| Units | 24 luxury condominiums |
| Total area | About 81,000 sq ft |
| Estimated project cost | Approximately $112 million |
| Retail space | ~6,000 sq ft, pre-leased to a bank |
| Expected completion | Late 2026 |
| Amenities (selected) | Fitness center, golf simulator, children’s room |
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