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Associated Press
28-04-2025
- Business
- Associated Press
Northwind Group Provides $45 Million First-Mortgage Loan for the Acquisition and Predevelopment of 300 East 42nd Street, a Midtown East Office Building Slated for Residential Conversion
NEW YORK, April 28, 2025 /PRNewswire/ -- Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, announced the origination of a $45 million senior first-mortgage loan for the acquisition and predevelopment of 300 East 42nd Street, an 18-story office building located in Midtown East submarket of Manhattan. The loan will bridge the property's conversion into a mixed-use asset with 135 multifamily rental units in addition to a long-term leased office component. The loan was originated by Northwind Debt Fund III, the firm's latest closed-ended vehicle focused on real estate credit investments in major gateway urban markets. Northwind structured a competitive and quick financing solution. Since the beginning of the year, Northwind Group has originated approximately $400 million in new loans, building on the platform's strong performance in 2024, when it closed more than $1.1 billion across its credit platform. The acquisition and conversion of 300 East 42nd Street are being led by a group of seasoned New York City-based developers, with whom Northwind has a longstanding lending relationship. Located at the corner of 42nd Street and 2nd Avenue, the property spans a full blockfront just steps from Grand Central Station and the United Nations. The conversion plan takes advantage of the building's as-of-right zoning and efficient floor plates that support residential layouts without requiring additional light and air shafts. The mid-section of the building, which is already vacant and not subject to tenant buyouts, will be converted to residential use. The upper and lower floors, currently occupied by a roster of diplomatic tenants, will remain as office space. The asset will feature dedicated lobbies and elevator banks for the residential and office components, enabling a clean separation of uses. The project is expected to benefit from the 467-m tax abatement program, which incentivizes residential conversions and supports mixed-income housing. Ran Eliasaf, Founder and Managing Partner of Northwind Group, commented, 'We identified an opportunity to originate this loan at a favorable basis, representing a 75% discount to the prior ownership's cost basis for a project that is zoned as-of-right, with no need to relocate tenants, and a clean path to conversion capitalizing on the experience we gained lending on similar assets in NYC. The building's layout is naturally suited for residential use with three sides of light-and-air as the asset spans the full Second Avenue block from 42nd to 41st Street. At the same time, the remaining office component continues to generate consistent long-term cash flow leased to diplomatic tenants. Given its proximity to Grand Central and other transit hubs, employment centers, schools, hospitals, and the UN, the property is wellpositioned to meet residential demand in a supply-constrained market. Northwind is proud to be at the forefront of financing office to residential conversion projects in NYC unlocking much-needed new rental supply'. The financing was arranged by Morris Betesh at Arrow Real Estate Advisors. About Northwind Group Founded in 2008 by Ran Eliasaf, Northwind Group is a Manhattan-based real estate private equity firm specializing in debt investments through discretionary, closed-ended funds. The firm has successfully executed over $5.6 billion in real estate transactions across more than 320 properties. For further information, go to Media Contact: [email protected] View original content to download multimedia: SOURCE Northwind Group
New York Post
27-04-2025
- Business
- New York Post
East 42nd Street office building to be converted to apartments
There's a major new player, and a new plan, for 300 E. 42nd St., an 18-story, 235,000 square-foot office and retail building which investor David Werner was reported to be buying at a deep discount. Although not yet posted in public records, the purchase closed last Wednesday for $52 million, as expected — less than half the property's last sale price in 2019. But the twist is that Werner is flipping most of the building for a partial residential conversion, while keeping its valuable 7,300 square feet of retail for himself. Advertisement David Werner's purchase of 300 E. 42nd St., above, closed last Wednesday. Steve Cuozzo The conversion project will first come to life with a $45 million, pre-development acquisition loan from Ran Eliasaf's private equity firm Northwind Group. The loan also closed last week. A construction loan is likely nine months to a year away. Northwind a few years ago provided a $313 million construction loan to revive the then-stalled 125 Greenwich St. condo tower and has been a very active lender on the development scene. Advertisement Eliasaf declined to identify Werner's flipee. Nor would he confirm what residential-market sources told Realty Check — that the new owner of most of the building is CSC, a real estate investment firm specializing in the redevelopment and repositioning of distressed assets. CSC's New York City projects include the adaptive reuse of a former Catholic church at 2045 Madison Ave. in East Harlem, and the conversion of a decayed hostel into the hip Riff Chelsea Hotel at 397 Eighth Ave. in Chelsea. Eliasaf did share that the plan at 300 E. 42nd St. is to leave about 90,000 square feet on higher floors, which are mainly leased to diplomatic and government tenants, as offices. Ran Eliasaf runs private equity firm Northwind Group. JW Headshots/Northwind Group Advertisement But more than 93,000 vacant square feet will be converted to 135 rental apartments, Eliasaf said. The project will likely enjoy a tax abatement under the state's 467-m program to facilitate residential conversions, in exchange for earmarking 20% of units as affordable. Eliasaf noted, 'The ability to deliver mostly free-market new supply is very attractive, especially in Midtown.' The building at 300 E. 42nd St. stands diagonally across the Second Avenue intersection from two former Pfizer buildings that are being converted into a city-high 1,600 rental apartments. Werner is a partner in that ambitious project with Nathan Berman's MetroLoft.
Associated Press
10-04-2025
- Business
- Associated Press
Northwind Group Provides a $90 Million First-Mortgage Loan for the Acquisition and Partial Development of 675 Third Avenue, a 335K SF Class A Office in Midtown Manhattan Scheduled to be Converted to Multifamily Rentals
Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, has announced the origination of a $90 million senior first-mortgage loan for the acquisition and pre-development of 675 Third Avenue, a 32-story, Class A office building slated for conversion into approximately 430 multifamily rental units, a direct response to New York City's increasing housing demand. The loan, structured and originated by Northwind's latest debt fund, Northwind Debt Fund III, aligns with the firm's strategic focus on delivering tailored financing solutions to highly qualified sponsors and premier projects within New York City and other major gateway markets nationwide. NDF III launched in January 2025 and has quickly built momentum, with Northwind Group closing on approximately $300 million in new originations within the first quarter alone, following a strong 2024 performance that saw over $1.1 billion in loan originations across Northwind's credit platform. NDF III represents Northwind's fifth credit-focused fund, alongside two dedicated healthcare debt funds and two prior real estate debt funds. The acquisition and conversion of 675 Third Avenue are led by an experienced partnership between David Werner Real Estate Investments (DWREI) and Nathan Berman's Metro Loft Management. This joint venture is notably responsible for the nearby redevelopment of the former Pfizer headquarters into 1,600 residential units, marking New York City's largest office-to-residential conversion project to date also financed by Northwind Group. This new loan transaction continues Northwind's established relationship with both DWREI and Metro Loft. In August 2024, Northwind provided a $75 million acquisition loan for 219 East 42nd Street and followed in January 2025 with a $135 million loan for the fee interest in the adjacent 235 East 42nd Street property, reinforcing its confidence in the sponsors' capabilities and vision. David Werner, President of David Werner Real Estate Investments, said, 'We are pleased to announce yet another successful loan closing with Northwind Group, whom we have developed a great partnership with. Northwind worked quickly and efficiently to meet a quick closing timeline while adhering to the terms of our agreement and providing flexible structure. I am excited for what is to come and look forward to working with the Northwind team on future transactions.' Nathan Berman, Founder and Principal of Metro Loft, said, 'We are excited to once again partner with David Werner, with critical financing support from Northwind Group, to bring Metro's 30 years of experience in residential conversions to this prime midtown location.' Ran Eliasaf, Founder and Managing Partner of Northwind Group, commented, 'We are excited to deepen our relationship with David Werner and Nathan Berman. 675 Third Avenue is exceptionally well-suited for residential conversion due to its ideal location in Midtown East, excellent natural light, and efficient floorplates. Having witnessed DWREI and Metro Loft's significant progress at the former Pfizer buildings, we are confident in their ability to replicate that success here. Given the city's ongoing housing shortage and the supportive environment created by new legislative initiatives such as the City of Yes and updated affordable tax abatement programs, converting office space into residential units represents a significant opportunity, it is amazing to see how, between the 3 loans we have made, a full city block on 42nd Street between 3rd and 2nd Avenues is being converted from office to residential rental units. Northwind Group is proud to be on the forefront of financing these market-leading, trend-setting projects.' The acquisition was arranged by Adam Spies and Jordan Roeschlaub of Newmark. About Northwind Group Founded in 2008 by Ran Eliasaf, Northwind Group is a Manhattan-based real estate private equity firm specializing in debt investments through discretionary, closed-ended funds. The firm has successfully executed over $5.6 billion in real estate transactions across more than 320 properties. For further information, go to About Metro Loft Established in 1997 by Nathan Berman, Metro Loft is a vertically integrated real estate development and management firm known for its transformative office-to-residential conversions throughout New York City. The firm has significantly contributed to the residential landscape of Lower Manhattan by developing and managing numerous prominent condominium and rental properties. About David Werner Real Estate David Werner Real Estate Investments, based in New York City and led by industry veteran David Werner, boasts over four decades of successful investment in commercial real estate. With extensive experience across office and residential sectors, the firm is recognized for its ownership and strategic management of some of New York City's iconic properties.
Yahoo
01-04-2025
- Business
- Yahoo
Northwind Group and BHI Provide $170 Million Construction Loan for Nortco's Boutique Luxury Condominium Project at 200 West 88th Street in Manhattan
NEW YORK, April 1, 2025 /PRNewswire/ -- Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, together with BHI, the U.S. branch of Bank Hapoalim B.M., a full-service commercial bank, today announced the origination of a $170 million construction loan to fund a boutique luxury condominium development at 200 West 88th Street, located in Manhattan's Upper West Side. The financing will fund the ground-up development of a 36-unit ultra-luxury condominium project led by Nortco Development, a privately held real estate development and investment firm. The property will be designed by a globally renowned architect and will offer spacious three- to five-bedroom units, many featuring private outdoor spaces, and a curated selection of amenities. The project aims to address a notable shortage of boutique-scale, full-service buildings with large-format residences in the Upper West Side market. Northwind's financing was provided through Northwind Debt Fund III (NDF III), the firm's latest real estate credit fund, which has rapidly scaled since launching in January 2025, surpassing $300 million in originations during its first quarter. This latest transaction underscores Northwind's strategic approach to delivering tailored financing solutions for experienced sponsors developing high-caliber residential projects in New York City. The deal follows a strong 2024, during which Northwind originated over $1.1 billion in loans across its real estate credit platform. NDF III is the firm's fifth credit fund, complementing two dedicated healthcare debt funds and two previous real estate debt funds. "We are pleased to fund this loan for Nortco a repeat borrower of Northwind and happy to collaborate with BHI on this marquee project," said Ran Eliasaf, Founder and Managing Partner of Northwind Group. "We have supported this project from the pre-development phase and are excited to continue our involvement through construction. This loan demonstrates our strong commitment to financing premier condominium developments in New York City. We see sustained demand from discerning buyers seeking thoughtfully designed, family-sized residences on the Upper West Side and particularly value the opportunity to partner again with trusted, repeat borrowers. "We are excited to partner once again with Northwind on this exciting development, which will reshape the landscape of the Upper West Side," said Haim Nortman, Founder of Nortco Development. "Their relationship-driven approach, quick execution and deep understanding of the market enable us as developers to seize opportunities and deliver transformative projects." "The Upper West Side has long been one of the most desirable areas of Manhattan real estate," said Ilana Druyan, Senior Vice President – Team Leader and Head of International Origination – CRE, at BHI. "We're always honored by the opportunity to work together with returning sponsors who elect to use our bank to finance their subsequent projects, and we're excited to work with Haim and Rony Nortman of Nortco, and to partner with Northwind to introduce new compelling inventory to this market." About Northwind GroupFounded in 2008 by Ran Eliasaf, Northwind Group is a Manhattan-based real estate private equity firm focused on credit strategies through discretionary, closed-ended debt funds. The firm has executed over $5.6 billion in real estate transactions across more than 320 properties. For more information, visit About Nortco DevelopmentNortco Development is a privately held real estate development and investment firm based in New York City founded in 2013 by Haim Nortman. The firm specializes in condominium and multifamily development projects across NYC. About BHI BHI, the U.S Branch of Bank Hapoalim, B.M., Israel's leading financial institution, provides commercial banking solutions to middle market clients in sectors including commercial real estate; general, domestic and Israeli C&I private equity; food and beverage; apparel; healthcare; corporate banking; and high-tech. In addition to its New York headquarters, the bank operates U.S. Representative Offices in Woodcliff Lake, New Jersey; Miami, Florida; and Los Angeles, California. For more information, Media Contact: Northwind@ View original content to download multimedia: SOURCE Northwind Group Sign in to access your portfolio
