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 Real Estate Advisors Arranges $73M Construction Loan for 18-Story Condominium at 171 East 86th St.
A $73 million construction loan has been arranged for the ground-up development of an 18-story luxury condominium at 171 East 86th St. in Manhattan’s Upper East Side. The financing was provided by Madison Realty Capital and was negotiated by Arrow Real Estate Advisors on behalf of Z.D. Jasper Realty.
What was announced
The transaction secures construction financing to move forward with the new tower at 171 East 86th St. The project is positioned within a neighborhood known for cultural institutions, top schools, and retail, and project materials describe the development as poised to become a defining new address on the Upper East Side. Sales and marketing for the development will be handled exclusively by Brown Harris Stevens Development Marketing.
Team and roles
The financing was negotiated by an Arrow team led by Morris Betesh, founder and managing partner. The team also included Omar Ferreira, senior vice president, and Jacob Petrovic, an associate. Arrow arranged the loan for the sponsor, Z.D. Jasper Realty, and structured the financing to support construction through completion and positioning for sales.
Project positioning and marketing
According to the development description, the project aims to combine the sponsor’s track record of successful condominium developments with the neighborhood’s mix of cultural and retail amenities. Marketing will be exclusively managed by Brown Harris Stevens Development Marketing, which will oversee messaging and sales strategy as units are readied for market.
Context: other financings handled by the same advisory team
Arrow Real Estate Advisors also arranged a separate $320 million construction loan for a major office-to-residential conversion at 80 Pine St. in Manhattan’s Financial District. That financing was provided by BridgeCity Capital and Deutsche Bank to support Bushburg Properties’ plan to transform lower floors into approximately 713 residential units, part of an overall conversion totaling roughly 1.2 million square feet.
The 80 Pine St. project occupies a full city block, was originally constructed in 1960, and underwent nearly $100 million in recent renovations. Bushburg acquired the property in September 2024 and has signaled an intent to reposition the building as a mixed-use community hub with residential, office, and retail uses. The Arrow team negotiating that loan included Morris Betesh, senior vice president Alex Bailkin, and senior associate Matt O’Hanlon.
Financing structure and objectives
The construction financing for 171 East 86th St. was structured to support the Sponsor through the build phase and to position the property for a market-facing sellout upon completion. Lender selection and loan terms were driven by the sponsor’s development track record and the perceived market strength of the Upper East Side site.
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Why this matters
The $73 million loan represents a key step for the 171 East 86th St. ground-up project, enabling vertical construction and pre-sales planning in a stable Manhattan neighborhood. In parallel, the Arrow-arranged $320 million financing for 80 Pine St. underscores ongoing capital activity around conversions and large-scale repositionings in the city, signaling lender appetite for both new luxury residential development and strategic office-to-residential transformations.
FAQ
What is the amount and purpose of the loan for 171 East 86th St.?
The loan is for $73 million and will fund ground-up construction of an 18-story luxury condominium at 171 East 86th St.
Who provided the construction financing?
Madison Realty Capital provided the $73 million construction financing.
Who arranged the financing?
Arrow Real Estate Advisors arranged the financing on behalf of the sponsor, Z.D. Jasper Realty. The negotiating team included Morris Betesh, Omar Ferreira, and Jacob Petrovic.
Who is handling sales and marketing?
Brown Harris Stevens Development Marketing is handling sales and marketing exclusively for the project.
Is this related to other recent Arrow financings?
Yes. Arrow also arranged a separate $320 million construction loan for the conversion of 80 Pine St., which will support transformation into roughly 713 residential units across about 1.2 million square feet.
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Key project features
| Feature | Details |
|---|---|
| Address | 171 East 86th St. |
| Neighborhood | Upper East Side, Manhattan |
| Building Height | 18 stories |
| Loan Amount | $73 million construction financing |
| Lender | Madison Realty Capital |
| Arranging Advisor | Arrow Real Estate Advisors (team: Morris Betesh, Omar Ferreira, Jacob Petrovic) |
| Sponsor | Z.D. Jasper Realty |
| Sales & Marketing | Brown Harris Stevens Development Marketing |
| Related Arrow Financing | $320 million for 80 Pine St. conversion (713 units; ~1.2M sq ft) |
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 TX News
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