Avdoo Nabs $145M Loan for Upper East Side Condo

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Avdoo is ready to go vertical on the Upper East Side.

Shlomi Avdoo’s firm secured $145 million in construction financing from Valley National Bank for its project at 242 East 71st Street, The Real Deal has learned.

Avdoo bought the Upper East Side site, which sits on the corner of 71st Street and 2nd Avenue, for $52 million last year, backed by $32.2 million in financing from Valley National. The developer is planning a 22-story condo tower with 50 units and ground-floor retail.

The loan is the latest financing partnership between Avdoo and Valley National, which has provided acquisition loans, construction loans or both for the developer’s last two Brooklyn condo projects and a Downtown Manhattan development site.

Sales are expected to launch at 242 East 71st Street in 2027 with Compass Development Marketing Group.

The project is one of a number of residential developments looking to take advantage of the Upper East Side’s mismatched supply and demand. As of the end of October, the neighborhood counted just 171 units on the market, according to data from Corcoran Sunshine Marketing Group. The average asking price per square foot last month was nearly $3,300, up over 40 percent from the previous year.

This fall, Jeffrey Levine’s Douglaston Development launched sales with Young New Development Group at Brown Harris Stevens at its 73-unit tower at 175 East 82nd Street. The building will have one- to six- bedroom condos and four penthouses, with prices ranging from $3 million to $40 million. Simon Dushinsky’s Sky Equity Group also announced its plans to launch sales this year at its 60-unit condo building at 260 East 72nd, which will have two- to five-bedroom condos. A Douglas Elliman Development Marketing team led by Maya Kadouri will lead sales.

More projects are slated for the neighborhood. In September, Victor Sigoura’s Legion Investment Group announced a new residential project on the corner of 84th Street and Third Avenue, in partnership with SMA Equities. And Naftali Group is still chugging along on its highly anticipated project at 800 Fifth Avenue, which it bought for more than $800 million last year.

Avdoo has not put all its eggs into the Upper East Side’s gilded basket. It picked up a development site at 68 King Street in Hudson Square for $63 million last year, and is also developing a rental project at 601 Union Street in Gowanus.

The firm is also wrapping up sales on two luxury condos in Brooklyn. It has nearly sold out its 105-unit Boerum Hill project at 323 Bergen Street and is over 70 percent sold at its Cobble Hill development at 110 Boerum Place.