Northwind Group Provides $135M Loan for NYC Office-to-Residential Conversion
- Editor
- Jan 29
- 2 min read
What's Happening: Northwind Group, a Manhattan-based real estate private equity firm, has provided a $135 million first mortgage acquisition loan for the conversion of a former Pfizer office building in Midtown Manhattan into a multifamily property. This marks the first loan from Northwind's newly launched NDF III debt fund.
The Key Moves:
Northwind Group provided a $135 million loan for the acquisition and conversion of 235 East 42nd Street in Manhattan.
The 33-story office tower will be converted into a Class A multifamily property with approximately 910 units, retail, and amenity space.
This is Northwind's eighth office-to-residential conversion project financing, demonstrating their expertise in this growing trend.
By The Numbers :
Northwind Group originated over $1.1 billion in new loans in 2024.
The fund now manages three CRE debt funds and two healthcare debt funds.
Together with a neighboring property, this project will create ~1,600 multifamily units, making it the largest office-to-residential conversion in NYC history.
Key Quotes:
David Werner, President of David Werner Real Estate Investments: "It was a pleasure once again closing a loan with Northwind Group. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution."
Ran Eliasaf, founder and managing partner of Northwind Group: "We are excited to close on the first loan for NDF III, executing on another transaction for our repeat borrower DWREI, and look forward to being part of their continued success."
Ran Eliasaf: "As the lender on the fee in the most senior position in the capital stack, we are committed to supporting investors looking to provide more housing to the New York City market."
The Bottom Line: Northwind Group's $135 million loan for the office-to-residential conversion project in Midtown Manhattan demonstrates the fund's commitment to financing innovative real estate solutions in a challenging market. The deal highlights the growing trend of repurposing office spaces into much-needed housing in major urban centers.
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