Avdoo has secured a $145 million construction loan from Valley National Bank for its Upper East Side project at 242 East 71st Street. The 22-story condo tower will feature 50 units and ground-floor retail space. The building, located on the corner of 71st Street and 2nd Avenue, is part of Avdoo’s strategic expansion in the area.
The developer purchased the site for $52 million last year, with $32.2 million in financing from the same bank. This marks the latest collaboration between Avdoo and Valley National, which has supported the firm’s recent projects in Brooklyn and Downtown Manhattan, including acquisition and construction loans for multiple developments.
The Upper East Side development is one of several residential projects aiming to address the area’s supply-demand imbalance. As of the end of October, the neighborhood counted just 171 units on the market, according to data from Corcoran Sunshine Marketing Group. The average asking price per square foot last month was nearly $3,300, up over 40 percent from the previous year.
Other notable projects in the neighborhood include Douglaston Development’s 73-unit tower at 175 East 82nd Street, which features one- to six-bedroom condos and four penthouses priced between $3 million and $40 million, and Sky Equity Group’s 60-unit condo building at 260 East 72nd Street, offering two- to five-bedroom units. Sales for Avdoo’s project are expected to begin in 2027 with Compass Development Marketing Group.
Avdoo’s portfolio extends beyond the Upper East Side, with ongoing projects in Hudson Square and Gowanus. The firm acquired a development site at 68 King Street in Hudson Square for $63 million last year and is developing a rental project at 601 Union Street in Gowanus. Additionally, Avdoo is wrapping up sales on two luxury condos in Brooklyn. It has nearly sold out its 105-unit Boerum Hill project at 323 Bergen Street and is over 70% sold at its Cobble Hill development at 110 Boerum Place.
The Upper East Side’s real estate market remains competitive, with several developers launching new projects. In September, Legion Investment Group announced a new residential project on the corner of 84th Street and Third Avenue, in partnership with SMA Equities. Naftali Group is also progressing on its highly anticipated project at 800 Fifth Avenue, which it acquired for over $800 million last year.
