ZD Jasper’s luxury condo project on the Upper East Side is full steam ahead thanks to fresh financing from Madison Realty Capital.
The lender provided a $73 million construction loan for the Queens developer’s project at 171 East 86th Street, the former home of Papaya King, Crain’s reported. The financing is expected to support ZD Jasper through the entire building process, expected to be a $112 million endeavor.
An Arrow Real Estate Advisors team including Morris Betesh, Omar Ferreira and Jacob Petrovic arranged the financing.
Jasper Wu’s firm filed plans for the site between Third Avenue and Lexington Avenue last April. ZD Jaspser is aiming to build an 18-story property with 24 luxury condo units, ranging from two- to five-bedroom pads sprawled across 81,000 square feet. The pricing has yet to be determined. Residential amenities will include a fitness center, golf simulator and children’s room.
Development is expected to finish late next year. A bank has already signed on for the 6,000-square-foot ground-floor retail space at the project.
ZD Jasper purchased the development site from Gary Barnett’s Extell Development in late 2023 for $29 million, or roughly $485 per square foot of developed real estate. Extell acquired the site in 2021 for $21 million, then added 10,000 square feet of air rights.
The Papaya King location closed after a lengthy dispute. After prolonged uncertainty, the hot dog purveyor relocated and reopened essentially kitty-corner across East 86th Street and Third Avenue.
In the spring, ZD Jasper scored $125 million for its project at 45-40 Vernon Boulevard in Long Island City. The financing was provided by iCross Capital and arranged by the same Arrow team. ZD Jasper’s plans at the site are for a 23-story, 190-unit luxury condo building at the former Paragon Paint Factory.
And in September, ZD Jasper landed $117.5 million in construction financing for a project at 430 West 37th Street in Hell’s Kitchen. Maxim Capital Group provided the debt on the mixed-use, condo-forward project.
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ZD Jasper secures construction financing for Hell’s Kitchen condos
