Naftali Group has received $102.7 million in construction financing for its latest Upper East Side of Manhattan luxury condominium project, a 13-story building at 1165 Madison Ave. with 12 residences and 3,750 square feet of ground-floor retail.
BHI, the U.S. division of Bank Hapoalim of Israel, provided $67.7 million and Israel Discount Bank of New York will hold $35 million of the overall loan amount.
The building at Madison Avenue and East 86th Street will total 62,700 square feet and be designed by the renowned Robert A.M. Stern Architects. It is the second luxury condominium to be developed by Naftali on Madison Avenue. The Benson at 1045 Madison Avenue, which has 15 luxury condo residences, has sold out. Miki Naftali, chairman & CEO of Naftali Group, said in a prepared statement that area of Madison Avenue had not seen ground-up condominium development in more than 25 years before the firm built The Benson.
Ilana Druyan, BHI first vice president & head of International Originations Real Estate, said in a prepared statement 1165 Madison will be an extremely desirable building in an area of the Upper East Side that continues to demonstrate considerable momentum at the upper reaches of the market.
Naftali has a current and past portfolio comprised of more than 30 projects encompassing more than $9 billion in total value. The firm acquired the Madison Avenue property from Vornado Realty Trust for $71 million, according to The Real Deal. The property formerly housed an Italian restaurant and also included an eight-unit apartment building and two vacant buildings.
Plans call for four penthouses, two of which will be duplexes, as well as three full-floor residences and two half-floor units. Amenities will include a rooftop terrace, squash court, fitness center, children’s playroom and theater.
A construction timetable was not released.
Last week, BHI announced it had provided $60 million in financing to Tishman Realty & Construction to acquire 70 luxury condominium units at 505 W. 43rd St. in Manhattan’s Hell’s Kitchen neighborhood from developer Elad Group. The transaction—the first major bulk condominium sale in New York City since the pandemic—totaled $87.4 million.