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

Associated Press

10-04-2025

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 www.northwind-group.com.
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.