Legion Investment Group and SMA Equities have partnered for the development of a 300,000 square foot residential project in Manhattan's Upper East Side. The new consortium received a USD 99 million pre-development financing commitment on Thursday for the 37-storey construction project at 1491-1497 Third Avenue, as reported by The Real Deal, which first published the news.
The loan was provided by BDT & MSD Partners and Deutsche Bank. A team from Walker & Dunlop, comprising Aaron Appel, Dustin Stolly, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, and Sean Bastian, arranged the financing. Aaron Appel stated that they were pleased to partner again with Legion, alongside SMA Equities, to arrange the financing that facilitated the acquisition of this irreplaceable Upper East Side condominium development site.
Site History and Construction Start
The assemblage of the parcels at the corner of East 84th Street and Third Avenue took almost 20 years. Samy Mahfar's SMA Equities acquired the corner parcel at 1491-1493 Third Avenue in 2007 for USD 33.8 million, together with real estate investor David Moussazadeh and Francis Moezinia of Rex Properties. In 2016, the three partners secured the taller commercial building at 1495 Third Avenue for USD 18.2 million. This was followed in 2025 by the purchase of the five-storey mixed-use residential building at 1497 Third Avenue for USD 12.5 million.
Demolition for the residential project has already commenced. Hill West Architects has been selected for the design. The future 510-foot-tall tower will include approximately 120 condominium units and 18,994 square feet of commercial space on the lower floors, as announced by New York YIMBY.
Expansion of Legion Investment Group's Portfolio
This project with SMA Equities adds another venture to Legion Investment Group's Upper East Side portfolio. It already includes luxury condominium towers at 109 East 79th Street and 1122 Madison Avenue. The latter project, developed with Nahla Capital, topped out in January. Last summer, Legion also completed the vertical construction phase at 550 West 21st Street, an 83-unit project along the High Line in Chelsea. The company is also continuing the development of its six-parcel site at 38 Gramercy Park East alongside Gindi Capital.
A spokesperson for Deutsche Bank declined to comment on the transaction. Spokespersons for Legion, SMA Equities, and BDT & MSD Partners did not respond to enquiries.
