Chess Builders Buys UES Building Slated for Demolition for $50M
A new, two-building apartment development is on the way.
By Isabelle Durso March 6, 2025 5:08 pm
reprints
Chess Builders has acquired an Upper East Side residential building that it plans to tear down to build a new two-building apartment development, according to city records made public Thursday.
Chess, through the entity East 86 Realty, has purchased the property at 355 East 86th Street for $50 million from Extell Development, which used the entity 355 East 86th Street, records show.
Extell Executive Vice President Marc Kwestel signed for the seller, records show. It was unclear who signed for the buyer.
A spokesperson for Extell did not immediately respond to a request for comment, while a spokesperson for Chess could not be reached for comment.
Valley Bank is said to have provided acquisition and construction financing totaling $119 million for the project, with Landstone Capital Group’s Leah Paskus negotiating the financing. Valley Bank and Landstone officials couldn’t immediately be reached for comment.
Valley Bank’s loan will finance the development of two mixed-use buildings at the site, with a combined 200,364 square feet, 198 residential units and 4,682 square feet of ground-floor retail space, sources said.
Extell bought the four-story Yorkville building, which has 45 apartments, near the corner of East 86th Street and First Avenue in 2021 from longtime owner Bremen House for $14.5 million, property records show. That purchase was part of a package including several other East 86th Street properties, including the former home of Gracie’s Corner Diner, Patch reported.
Demolition permits were first filed for the property in 2023, when numerous small businesses were evicted from the building, according to Patch. New permits were then filed by Chess in September, this time calling for a new 23-story property at 1655 First Avenue, New York YIMBY reported.
Chess’ proposed 145,086-square-foot building would feature 99 residential units, as well as retail space on the ground floor, according to the outlet.
Update: This story has been updated to include details on the financing for the deal.
Isabelle Durso can be reached at idurso@commercialobserver.com.
