Northwind Group Provides a $23 Million First-Mortgage Loan Secured by 18 Brand New Residential Condominium Units in Los Altos, CA

News provided by

Jun 06, 2024, 09:00 ET

NEW YORK, June 6, 2024 /PRNewswire/ -- Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, announced today that through its closed-end debt funds it provided a $23 million first mortgage, senior secured condo inventory loan collateralized by the remaining 18 unsold residential condominium units in the recently completed 4-story residential property located at 450 First Street in Los Altos, CA, in the heart of Silicon Valley.

The property was built by Edge Development Group, a developer, general contractor, and investment group founded by principals Farzin Shakib and Mark Yazdani, who have deep experience developing high-end residential and commercial properties in the San Francisco Bay Area. "The Northwind team worked tirelessly to close our loan much faster than we had anticipated. It was an arduous task, but they masterfully navigated us through the entire process. We appreciate their professionalism, expertise, and speed with which they performed," said Amir Farhid, Chief Operating Officer of Edge Development Group.

The property achieved substantial completion in 2024 and has experienced strong sales momentum, selling over a third of the available units, including all three penthouses, within the first two months since the TCO was issued. Sales are led by the Joyce and Tatum team from Christie's International Real Estate Sereno, industry veterans with over 20 years of experience in the Bay Area.

Northwind Group structured a fast and flexible solution to refinance the existing construction loan and provide Edge Development with the time to strategically sell the remaining unsold units to achieve maximum sales value. This is the first loan in the Bay Area provided by Northwind's debt funds, highlighting Northwind's strategy of providing financing to high-quality assets in gateway markets across the US. In the first quarter of 2024, Northwind Group successfully closed on over $540 million in loans. This loan shares the same investment thesis as Northwind's recently closed $111 million first mortgage condo inventory loan on a 17-story residential condominium tower in Houston, Texas and further demonstrates Northwind's breadth and capabilities.

"Condo inventory loans are our bread and butter and we have become one of the more active lenders in this space. Despite the challenges in the Greater San Francisco market, the strength of sales, quality of construction, and the value proposition of condo ownership within one of the nation's most expensive housing markets gives us confidence in this loan and the sponsor's business plan. This is a straight down the fairway loan for our funds' investment risk profile, and we are excited to begin this relationship with Edge Development Group," said Ran Eliasaf, founder and managing partner of Northwind Group.

The financing was arranged by Evan Kinne from George Smith Partners, Inc. "Northwind and Michael Ainbinder were exceptional professionals. Their flexible structure and commitment to holding pricing and executing due diligence in a timely manner made all the difference in our recent closing. We're truly looking forward to more successful collaborations!"

Northwind Group was represented by John Vavas of Polsinelli Law Firm.

About Northwind Group
Northwind Group, founded in 2008 by Ran Eliasaf, is a Manhattan based real estate private equity firm and debt fund manager with $4 billion in AUM that provides whole loans and structured finance solutions through its discretionary closed-ended debt funds. For further information, go to www.northwind-group.com.

About Edge Development Group
Edge Development Group, in partnership with its sister company Edge Builders Group, is a vertically integrated real estate developer, general contractor, and investment group that focuses on residential and commercial real estate in the San Francisco Bay Area. The firm is led by Farzin Shakib and Mark Yazdani, who collectively have over 50-years of experience in real estate and have owned or developed a portfolio of over 2,000 units in the aggregate.

Media Contact:
[email protected]

SOURCE Northwind Group