Naftali Scores $140M for UES Luxury Condo Construction

Miki Naftali is signing contracts for his luxury condominium project in the Upper East Side. He’s also finding more debt to back the development’s completion.

The Naftali Group landed a $140 million construction loan from JPMorgan Chase for its development at 255 East 77th Street, PincusCo reported. The lender returned to the table after being involved in another recent loan at the Lenox Hill project.

Last year, JPMorgan and Barry Sternlicht’s Starwood Capital provided $236 million for the 62-unit, 500-foot-tall tall development. The debt was split between JPMorgan’s $195 million senior loan and Starwood’s $41 million in mezzanine debt.

Naftali purchased the land for the condo project three years ago for $73 million, or $428 per zoned square foot. The building is set to span 190,000 square feet and has a projected sellout of $531.6 million, according to documents filed with the state attorney general.

The developer launched sales in September for both 255 East 77th Street and The Henry at 211 West 84th Street. Compass Development Marketing Group is marketing 255 East 77th, which snagged a dozen contracts in the weeks after launching sales.

Naftali has bucked the city’s slumping condo market and the tougher interest rate environment for a winning streak with his developments. Since 2020, he’s sold out multiple projects on the Upper East Side, including the 85-unit 200 East 83rd Street and two smaller projects on Madison Avenue.

While Naftali is plying his trade in Manhattan, he’s also focusing on overlooked areas of South Florida for more luxury projects, such as Downtown Miami and Fort Lauderdale; Naftali is looking to construct a two-tower, 47-story and 45-story apartment project with 936 units in Fort Lauderdale’s Flagler Village.

Naftali and Len Blavatnik are also working on a massive residential project in Williamsburg, reeling in $238 million in debt from Bank OZK this year.

— Holden Walter-Warner