Northwind Group originated a $231 million first-mortgage construction loan for the conversion of 675 Third Avenue in Midtown Manhattan into up to 450 rental apartments, the lender announced Monday, November 2. A quarter of the planned apartments will be affordable under New York’s 467-m program, according to the company.
The financing announcement, issued at 3:30 p.m. Eastern, says proceeds retired existing debt and will fund the office-to-residential conversion. The transaction is a construction financing, not a new purchase of the 32-story, 337,000-square-foot building in Midtown East.
Commercial Observer reported a $275 million figure; Northwind’s release says $231 million. The company release does not explain that difference. This report uses the amount in the lender’s own announcement.
The development is led by a joint venture between Nathan Berman’s Metro Loft Management and David Werner Real Estate Investments. The partners acquired the building in April 2025 with a $90 million acquisition loan from Northwind. The new financing follows that earlier purchase and planning period, rather than representing another acquisition.
Northwind said planning and predevelopment have advanced to the execution stage and preliminary construction activities are already taking place. Collaborative Construction Management will serve as construction manager, with Gensler Architecture, Design & Planning as architect of record. The release did not provide a completion date, apartment rents or an interest rate for the loan.
The loan came from Northwind’s NDF III debt fund, which recently closed with $1 billion in capitalization against an original $500 million target. That $1 billion is the size of the fund, not the cost of converting 675 Third Avenue or a separate amount committed to this building.
Ran Eliasaf, Northwind’s founder and managing partner, said this is the ninth office-to-residential conversion the firm has financed in New York City. He said its earlier acquisition financing gave the lender familiarity with the property and sponsors as the project moved into construction. His assessment of the business plan is the lender’s view, not a guarantee of completion or investment performance.
The announced apartment count remains a plan of up to 450 units, not homes already available to rent. The affordable component is part of the proposed conversion under 467-m. The construction loan gives the sponsors financing for the next stage of turning the existing office building into housing; delivery and lease-up still lie ahead.
JBizNews Desk | New York
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