Legion Investment Group and SMA Equities Secure $99 Million for 37-Story Upper East Side Tower

Victor Sigoura's Legion Investment Group and Samy Mahfar's SMA Equities have secured $99 million in financing to develop a 37-story residential tower on Manhattan's Upper East Side, adding a significant project to the corridor's pipeline of high-density housing.

The loan, provided jointly by BDT & MSD Partners and Deutsche Bank, closed September 24, 2026. A Walker & Dunlop capital markets team led by Aaron Appel, Dustin Stolly and Sean Bastian arranged the financing.

Project Details: 201 East 84th Street

The planned tower will rise approximately 510 feet at 201 East 84th Street — also identified by the development assemblage as 1491–1497 Third Avenue — at the southeast corner of East 84th Street and Third Avenue. The building is designed to encompass roughly 300,000 square feet and approximately 120 condominium units, along with approximately 18,994 square feet of lower-level commercial space.

Demolition of existing structures on the site is underway. The assemblage that made the project possible took nearly two decades to complete: SMA Equities began acquiring land at the site in 2007, with additional purchases following in 2016 and 2025.

Financing Structure and Lenders

The $99 million loan from BDT & MSD Partners and Deutsche Bank represents pre-development and acquisition financing for the project. At approximately 300,000 square feet of planned space, the loan equates to roughly $330 per planned square foot.

Walker & Dunlop's capital markets team, led by Aaron Appel, Dustin Stolly and Sean Bastian, also included Jonathan Schwartz, Keith Kurland, Adam Schwartz and Sean Reimer in arranging the financing.

Market Context: Upper East Side Residential Demand

The financing arrives as New York City's multifamily market shows signs of stabilization. Average multifamily rents in New York increased 1.5% quarter over quarter in the first quarter of 2026, while vacancy stood at 3.3% — down 0.2 percentage point from the prior quarter. At the broader New York multifamily level, cap rates reached approximately 6.09% in the second quarter of 2026, with average pricing at approximately $274,662 per unit, still roughly 19.2% below the 2021 peak.

For a ground-up condominium development of this scale, lenders focus primarily on projected sellout value, absorption pace, construction risk and sponsor capitalization rather than in-place operating income. The Upper East Side's constrained residential supply, established retail amenities and transit access along the Third Avenue corridor support the revenue outlook for new housing at this location.

Strategic Context for Legion and SMA Equities

The project expands Legion Investment Group's existing Upper East Side development portfolio. The partnership with SMA Equities combines Legion's institutional development and capital-markets platform with SMA's long-term control of the assembled site. The planned tower's approximately 120-unit condominium program and nearly 19,000-square-foot commercial component provide a diversified development program for the corner parcel.

Sources

Legion Investment Group — Official Announcement