Developers Secured $99 Million for Upper East Side Tower

Legion Investment Group and SMA Equities finalized financing for a 300,000-square-foot project on Third Avenue.

Updated on Sept. 25, 2026 in Construction

Developers Secured $99 Million for Upper East Side Tower

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Legion Investment Group and SMA Equities have closed a $99 million construction loan for a new residential building on the Upper East Side. The development will span 300,000 square feet at the corner of East 84th Street and Third Avenue.

Why it matters

The financing marks a major milestone for a site that required nearly two decades of assembly to reach its current scale. The project replaces older structures with a large-scale residential asset in a high-demand New York City neighborhood.

The $99 million loan was provided by BDT & MSD Partners and Deutsche Bank, with a Walker & Dunlop team managing the financing. The site was assembled through three separate purchases totaling $64.5 million between 2007 and 2025.

The players

Legion Investment Group

This is a real estate investment and development firm involved in the Upper East Side residential project.

SMA Equities

This is a property development company that partnered on the construction project on Third Avenue.

Hill West Architects

This is an architecture firm that served as the designer for the new residential development.

Department of Buildings

This is the New York City municipal agency responsible for issuing construction and demolition permits.

The details

Designed by Hill West Architects, the project follows the issuance of demolition permits by the Department of Buildings earlier this summer. Developers spent 18 years acquiring the three distinct lots required to construct the building at 84th Street and Third Avenue.

2007: Site assembly began with the acquisition of 1491-1493 Third Avenue.
2016: The developers acquired the neighboring site at 1495 Third Avenue.
2025: The final lot at 1497 Third Avenue was purchased.
Summer 2026: The Department of Buildings issued demolition permits for the site.
September 24, 2026: The $99 million construction loan officially closed.

Market Landscape

This project follows the established pattern of multi-decade site assembly for large-scale residential development seen throughout New York City. The transaction highlights the persistent competition among developers to consolidate prime corner lots in the Upper East Side.

Local residents will see demolition work begin at the corner of 84th Street and Third Avenue as the site is cleared for construction. Once complete, the project will add 300,000 square feet of residential space to the neighborhood.

The takeaway

The successful closure of this financing underscores the continued viability of large-scale residential projects in prime Manhattan corridors. Developers looking to initiate similar builds should prepare for lengthy site assembly periods, which often span over a decade.