Naftali Nails Down $68M Loan for Kips Bay Resi Project

Miki Naftali is the man with a plan for a parcel in Kips Bay. He’s got the financing, too.

First Citizens Bank provided the Naftali Group with a $67.5 million construction loan for the developer’s project at 307 Third Avenue, PincusCo reported. The loan for the 69-unit project closed at the beginning of the month.

With a loan in place, work should be able to commence on the condominium project that’s expected to launch sales this spring and complete construction in 2026.

A representative for the developer did not immediately respond to a request for comment from The Real Deal.

Naftali filed plans for a 111,000-square-foot property between East 23rd and East 24th streets a year ago. The 19-story, 210-foot-tall property is expected to include ground-floor retail space.

Naftali leased the space from Snake River Development, an entity of BNS Real Estate. Naftali signed a 99-year ground lease in September 2023 for $21.5 million.

The developer filed demolition permits for the low-rise property on the site last February. Demolition work wrapped over the summer, according to YIMBY.

Naftali has emerged as one of New York City’s most notable condo developers. Among his notable projects in the city in recent years have been a 62-unit project at 255 East 77th Street, for which the developer snagged a $140 million construction loan in December from JPMorgan Chase. Also on the Upper East Side is Naftali’s 85-unit building at 200 East 83rd Street, which sparked headlines for a string of pricey penthouse deals after launching sales in 2022.

Naftali is also working with Len Blavatnik’s Access Industries to develop 470 Kent Avenue in Brooklyn, a three-building, 561-unit complex.

Elsewhere in Kips Bay, Maverick Real Estate Partners recently bought four Steve Croman buildings in a foreclosure auction. Maverick’s credit bid went uncontested, but Croman told The Real Deal that the buildings would remain in receivership while he appeals a court ruling.

— Holden Walter-Warner