Avdoo & Partners Buys UES Development Site For $52M

Avdoo & Partners Development paid $52 million for five buildings on the Upper East Side, where it plans to build its first residential project in the neighborhood.

The firm, headed by Shlomi Avdoo, closed the deal for the Second Avenue and East 71st Street properties on Tuesday, the developer told The Real Deal. The purchase was backed by $32.2 million in financing from Valley National Bank.

“We’ve been eyeing the site for some time now,” Avdoo said. “Whenever an opportunity like this comes up, it’s obviously very exciting.”

Avdoo noted that the Upper East Side “has a really high barrier for entry and limited availability for development.” Several buildings are in the neighborhood’s historic district, while others fall under the rent stabilization laws of 2019.

Earlier this month, the developer filed plans to demolish the mixed-use structures, which include roughly 50 apartments, a convenience store and three restaurants, Crain’s New York first reported last week. An owner of one of the restaurants, Jean Claud II, relocated to First Avenue last year over concerns the French bistro’s former home would be knocked down.

Avdoo expects to begin construction on the site later this year, though the developer hasn’t yet settled on whether to build condos or rental units on the property.

“This will be one of the first buildings that gets filed under the City of Yes, so there’s still a lot to figure out,” Avdoo said. “What we know is that, regardless of the decision we make, we’re going to design a building that really fits well within the character of the neighborhood.”

The developer pointed to the law, approved by the City Council in December, allowing more flexibility than previous zoning regulations, particularly for building larger floor plates and outdoor spaces.

Avdoo purchased the properties on 1341-1347 Second Ave. and 242 East 71st St from Isaac Ohebshalom’s Gatsby Enterprises. Ohebshalom paid $27.5 million for the buildings in 2008. The company planned to construct a 21-story building on the site, though it never materialized.

Gatsby Enterprises did not immediately respond to a request for comment.

Bob Knakal’s firm, BK Real Estate Advisors, had the listing for the properties, which last asked $55 million.

Avdoo’s latest work includes residential projects in Brooklyn. The developer filed a condo declaration earlier this month with the New York Attorney General’s office announcing plans for a 21-unit development in Cobble Hill. The condo at 110 Boerum will include 20 parking spots and 19 storage units. Avdoo bought the site for $20 million in 2023.

The developer’s project at 323 Bergen Street, a 105-unit development known as the Bergen, was last year’s priciest condo filing in Brooklyn and Queens with an estimated sellout of close to $270 million. Last December, Avdoo secured $105 million in financing from Valley National Bank to complete construction on the project.