Northwind Group Provides $45 Million First-Mortgage Loan for Midtown East Office Building Conversion
- Editor
- Apr 28
- 2 min read
Whats Happening:
Northwind Group, a Manhattan-based real estate private equity firm, has originated a $45 million senior first-mortgage loan for the acquisition and predevelopment of 300 East 42nd Street. The 18-story office building in Midtown East Manhattan will be converted into a mixed-use asset with 135 multifamily rental units and a long-term leased office component. The loan was provided through Northwind Debt Fund III, the firm's latest closed-ended vehicle focused on real estate credit investments in major urban markets.
Key Moves:
Northwind Group provides $45M loan for 300 East 42nd Street acquisition and conversion
Building to be transformed into mixed-use asset with 135 rental units and office space
Loan originated through Northwind Debt Fund III, focused on urban real estate credit
By The Numbers:
$45 million senior first-mortgage loan provided
135 multifamily rental units to be created in the conversion
Northwind has originated ~$400 million in new loans since the beginning of the year
Key Quotes:
"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," - Ran Eliasaf, Founder and Managing Partner of Northwind Group
"Northwind is proud to be at the forefront of financing office to residential conversion projects in NYC unlocking much-needed new rental supply"
Bottom Line:
Northwind Group's $45 million loan for the conversion of 300 East 42nd Street demonstrates the fund's strategic focus on urban real estate credit investments. The project aims to address the demand for residential units in a supply-constrained market while maintaining office space for diplomatic tenants. This transaction highlights Northwind's ability to identify and finance value-add opportunities in prime locations.
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