Northwind Group Provides a $75 Million First-Mortgage Acquisition Loan Secured by 219 East 42nd Street, a 540K SF Office to Residential Conversion Project in Midtown

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Aug 22, 2024, 09:00 ET

NEW YORK, Aug. 22, 2024 /PRNewswire/ -- Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, announced today it provided a $75 million senior mortgage acquisition predevelopment loan secured by 219 East 42^nd Street, the former Pfizer headquarters in Midtown, Manhattan. The 9-story building is planned to be converted and redeveloped into a 29-story Class A multifamily rental property with up to ~660-units.

The property was acquired by a joint venture between affiliates of Nathan Berman's Metro Loft Management and David Werner Real Estate Investments (DWREI). Combined with the conversion of the adjacent vacant property at 235 East 42^nd Street (also controlled by Metro Loft and DWREI), the property will be part of the largest conversion project in NYC history. This is Northwind's second loan to DWREI in the last month, with the announcement coming shortly on the heels of the closing of a $95 million acquisition loan for 100 Wall Street, a 515K SF office building in Manhattan's Financial District which was acquired by a joint venture between BLDG and DWREI.

The successful closing underscores Northwind's commitment to cultivating strong relationships and doing repeat business with high quality borrowers. Since the beginning of 2024, Northwind has successfully closed on ~$800 million in loans in NYC and other major gateway cities and continues to provide capital to properties that meet its investment criteria. This loan reinforces Northwind's investment thesis, that NYC's housing shortage provides attractive investment opportunities for lenders and developers committed to bringing more rental units to the market.

David Werner, President of David Werner Real Estate Investments, said "It was a pleasure once again closing a loan with Ran Eliasaf and Michael Ainbinder of Northwind Group. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution. Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire Northwind team, and I look forward to working with them again in the near future. DWREI is honored to own this asset and work on this project together with Metro Loft."

Nathan Berman, CEO of Metro Loft, said "We're pleased to be working with Northwind as we embark with David Werner, an industry leader, on what we are confident will be another successful conversion of antiquated office space into modern residences."

"We are pleased to provide this financing to David Werner and Nathan Berman. This office building, located in the heart of Midtown East, is fully vacated and primed for an as-of-right conversion, which will be part of the largest office to residential conversion in NYC history. The attractive basis and top-tier sponsorship with deep experience and a clear executable business plan fit well within our debt fund's investment thesis," said Ran Eliasaf, Founder and Managing Partner of Northwind Group.

Northwind 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 that invests primarily in debt instruments through its discretionary closed-ended debt funds. For further information, go to www.northwind-group.com.

About David Werner Real Estate
David Werner is a NYC based real estate investor who has been actively involved in commercial real estate for more than 40-years. He has extensive experience with both office and residential properties and has owned many iconic office buildings in NYC.

About Metro Loft
Metro Loft is a vertically integrated real estate development and management company founded in 1997 by Nathan Berman, who serves as the managing principal. The company has played a significant role in the residential development of Lower Manhattan, specializing in the acquisition, development, and management of prominent condominium and rental buildings, with a focus on office-to-residential conversions throughout NYC.

Media Contact:
Jaclyn Leibrock
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SOURCE Northwind Group