Naftali lands $120M+ in financing for Upper East Side project

Money comes from Bank Hapoalim
By Eddie Small | July 09, 2019 03:15PM

1039-1045 Madison Avenue and Miki Naftali (Credit: Google Maps)

1039-1045 Madison Avenue and Miki Naftali (Credit: Google Maps)

For years, Naftali Group has been putting together a development assemblage along Madison Avenue. Now, the developer landed the financing it needs to move forward with a condominium project at the site.

Bank Hapoalim provided the developer with $120.4 million in construction financing for 1039-1045 Madison Avenue on the Upper East Side, according to property records. Architect Peter Pennoyer will design the project, according to Naftali.

The debt package includes a $16 million project loan, a $58.5 million building loan and a $45.9 million construction acquisition loan, property records indicate. Bank Hapoalim did not respond to a request for comment.

Naftali has been stitching together the four parcels between East 79th and 80th streets for roughly two years. The firm purchased 1041 Madison Avenue in 2017 for $21.1 million, 1045 Madison Avenue in 2017 for $22.8 million and 1039 Madison Avenue in 2018 for $26 million. It just bought the last parcel at 1043 Madison Avenue this summer for about $1.6 million. The assemblage offers more than 60,000 buildable square feet.

Company CEO Miki Naftali said in a statement that it looked forward to working with Pennoyer on project “in the most prominent location on the Upper East Side.”

Nearby, Naftali has partnered with Rockefeller Group on an Upper East Side luxury condo tower at 200 East 83rd Street. Naftali went under contract in February to buy 470 Kent Avenue on the Williamsburg waterfront for around $182 million as well.