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.
The most important details up front: Madison Realty Capital provided a $73,000,000 construction loan to fund a ground-up development at 171 E. 86th St. The financing was arranged by Arrow Real Estate Advisors on behalf of developer ZD Jasper. The project will rise 18 stories and deliver 24 luxury condominiums, with construction expected to be complete by late 2026.
The loan supports a development whose total projected cost is roughly $112 million. The building’s finished area is expected to total about 81,000 square feet, and the project includes approximately 6,000 square feet of ground-floor retail that has been leased to a bank. Condo pricing has not been finalized. Unit configurations will range from two- to five-bedroom layouts.
The broker team that handled the financing negotiation at Arrow Real Estate Advisors included founder and managing partner Morris Betesh, senior vice president Omar Ferreira and associate Jacob Petrovic. Arrow negotiated the financing on behalf of ZD Jasper Realty, a Long Island–based development firm that acquired the site in October 2023 for $24.5 million.
The building will feature two units per floor between the second and tenth floors, with full-floor residences above. Planned common facilities include a fitness center, a golf simulator and a children’s room. A developer rendering of the project exists and has been circulated in industry materials.
Work is slated to finish by late 2026, tying the lender’s construction timeline to the project’s planned sellout window. The capital package was structured to support construction through to completion and to position the development for marketing and sales afterward.
The parcel at 171 E. 86th St. had housed a long-standing local eatery since the 1930s before that business closed a few months prior to the site sale. The address sits on the Upper East Side, a neighborhood noted for high-end residential demand and an established market for luxury condominiums.
This $73 million construction loan followed separate financing the developer secured for another project: roughly $23.1 million from a different lender to support a six-story, 39-unit condominium project in Long Island City. ZD Jasper also has other active developments, including a 128-unit multifamily building in the Hudson Yards area and a mixed-use property purchased in 2024 in Long Island City.
Lender and broker sources described the financing as responsive to the project’s scale and the market position of the site. The lender evaluated the sponsor’s development track record and the Upper East Side location when underwriting the loan, and the broker structured the capital to carry the project through construction while supporting prospects for a successful market sale after stabilization.
With the construction loan in place and the ground-floor retail tenant secured, the developer will continue site work and vertical construction. Market pricing and the sales release timeline will be announced as construction progresses toward the late-2026 completion target.
The construction loan totals $73,000,000 and covers the ground-up development of an 18-story luxury condominium building at 171 E. 86th St.
The lender is Madison Realty Capital. Arrow Real Estate Advisors arranged the financing on behalf of the developer, ZD Jasper Realty.
The building will be 18 stories tall and will contain 24 condominium units, ranging from two- to five-bedroom layouts.
Construction is expected to be complete by late 2026.
Planned amenities include a fitness center, a golf simulator and a children’s room. The project includes roughly 6,000 square feet of ground-floor retail already leased to a bank.
The total estimated cost of the project is about $112 million.
Condo pricing has not yet been finalized and will be set and released by the developer as the project advances toward completion and marketing.
| Feature | Detail |
|---|---|
| Address | 171 E. 86th St., Upper East Side, Manhattan |
| Loan amount | $73,000,000 (construction) |
| Total project cost | Approximately $112,000,000 |
| Building size | About 81,000 sq ft |
| Stories / Units | 18 stories / 24 condominiums |
| Retail | Ground-floor retail, ~6,000 sq ft leased to a bank |
| Unit mix | Two- to five-bedroom units; two per floor on 2nd–10th floors; full-floor units above |
| Amenities | Fitness center, golf simulator, children’s room |
| Lender | Madison Realty Capital |
| Borrower / Sponsor | ZD Jasper Realty |
| Broker | Arrow Real Estate Advisors (M. Betesh, O. Ferreira, J. Petrovic) |
| Acquisition date / price | Purchased October 2023 for $24.5 million |
| Estimated completion | Late 2026 |
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