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Naftali Group Secures $103M Construction Loan for Manhattan Condo

The Naftali Group has secured $102.7 million in construction financing for its new 13-story luxury condominium on Manhattan’s Upper East Side.

BHI, a full-service commercial bank, is providing $67.7 million and Israel Discount Bank of New York will hold $35 million of the overall loan amount for the project at 1165 Madison Ave. The 62,700-square-feet project includes twelve condominium residences and 3,750 square feet of ground-floor retail space. It is being designed by Robert A.M. Stern Architects.

Previously, Naftali Group sold out The Benson at 1045 Madison Ave. The project at 1165 Madison is its second condominium along Madison Avenue, an area that has not seen a ground-up condominium development in over twenty-five years, according to Miki Naftali, CEO and Chairman of Naftali Group

“The expert real estate team at BHI understands our needs and the nuances of our new luxury residential project,” Naftali said in a prepared statement. “They have worked closely with us on the successful conclusion of our financing.”

The Naftali Group is building the project amid ongoing questions about the future of New York. In a recent podcast discussion with CBRE, professor Joel Kotkin, author of “The Human City, ” said New York “will change somewhat,” with growth likely being less than Michael Bloomberg’s predictions of 10 million residents within the city’s limits.

However, the people buying luxury residences, like 1165 Madison Avenue, will continue to have a presence in the city.

“Places like New York and San Francisco and even Los Angeles to some extent have an attraction to people who can buy themselves out of the negativity, although they do it because they’re young and Daddy’s paying the rent or they’re very wealthy,” Kotkin said. “And so they can send the kids to private school. And if there is a pandemic, they can run off to the Catskills or they can go to their condo in Florida.”
Reprinted with permission from the Wed, 02 Jun 2021 08:51:23 EDT online edition of GlobeSt © 2021 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.