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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
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
