The former Papaya King site at 171 E. 86th Street is becoming an 18-story luxury condo tower after developer ZD Jasper secured $73 million in construction financing.
Driving the News: Madison Realty Capital provided the construction loan for the project at 171 E. 86th St. between Third and Lexington avenues, positioning the development for what brokers call a “successful sellout,” Crain’s New York Business reports.
By the Numbers: The $112 million project will create 24 luxury condos across 81,000 square feet, with units ranging from two to five bedrooms, per Crain’s. The building will feature two units per floor on floors two through 10, then full-floor residences above.
Catch Up Quick: Long Island-based ZD Jasper purchased the site from Extell Development for $24.5 million in October 2023. The Upper East Side address had housed a Papaya King location since the 1930s, which moved shortly before the sale.
The Price Tag: While condo pricing remains undetermined, the development includes 6,000 square feet of ground-floor retail space already leased to a bank, sources familiar with the deal told Crain’s.
What’s Next: Construction should wrap up by late 2026. The finished building will include amenities like a fitness center, golf simulator and children’s room, Crain’s notes.
