Northwind Group announces $90 million loan for office building conversion in Manhattan
- Northwind Group originated a $90 million loan for the conversion of an office building.
- 675 Third Avenue will be transformed into around 430 multifamily rental units.
- This project addresses the growing housing demand in New York City.
In New York City on April 10, 2025, Northwind Group announced that it has originated a $90 million senior first-mortgage loan for the acquisition and pre-development of 675 Third Avenue, which is a 32-story Class A office building. This loan is intended for its conversion into approximately 430 multifamily rental units, addressing the increasing demand for housing in the city. The financing is structured through Northwind's latest debt fund, Northwind Debt Fund III, which is focused on providing tailored financing solutions to qualified sponsors working on premier projects, especially in New York City and other major markets. The fund has quickly gained traction, closing around $300 million in new originations in its first quarter, building on a strong performance in 2024 where they completed over $1.1 billion in loan originations across their credit platform. This significant financial move also represents a continuation of Northwind's ongoing relationships with David Werner Real Estate Investments and Metro Loft Management, who are handling the acquisition and conversion of the property. These two firms have previously collaborated with Northwind on major projects, including the conversion of former Pfizer headquarters into residential units. The new loan represents strategic growth opportunities in light of recent legislative initiatives that support housing development in the city. David Werner and Metro Loft have expressed confidence in their ability to replicate previous successes, particularly given the favorable market conditions created by new policies aimed at facilitating office-to-residential conversions. Ran Eliasaf of Northwind highlighted the positive impact of converting office space to residential units, noting the city's ongoing housing shortage and the supportive legislative environment. This project is characterized as being part of a broader trend in which Northwind has been actively financing conversions that respond to market demands.