Northwind Group Provides Major Financing for NYC's Largest Office-to-Residential Conversion Project
On January 29, 2025, Northwind Group, a prominent private equity firm based in Manhattan, announced the disbursement of a substantial $135 million first mortgage acquisition loan. This financing is linked to 235 East 42nd Street, a noteworthy building poised for transformation from a commercial office space into a vibrant residential complex in Midtown Manhattan. With a sizable 774,000 square feet area, the vacant 33-story tower aims to evolve into a premier Class A multifamily property featuring approximately 910 residential units, complemented by retail and amenity spaces.
This impressive funding initiative is part of Northwind's latest debt fund, named NDF III, which launched in January 2025. The fund's mission is to deliver structured financial solutions tailored for high-quality sponsors and impactful projects in New York City and other key markets across the United States. The establishment of NDF III follows a remarkably successful 2024, during which Northwind originated loans exceeding $1.1 billion, showcasing its influence in the real estate finance sector. Currently, Northwind manages three commercial real estate (CRE) debt funds alongside two devoted to healthcare investments.
The proceeds from this principal loan, in conjunction with equity contributions from David Werner Real Estate Investments (DWREI), were instrumental in acquiring the fee position from the Seaver family. A joint venture involving DWREI and Nathan Berman's Metro Loft, the latter already holding leasehold interests, will lead the charge in converting the office tower into desirable living spaces. Notably, in August 2024, Northwind previously issued a $75 million first mortgage loan to the same joint venture for a nearby property at 219 East 42nd Street. The synergy between the two projects represents NYC's largest office-to-residential conversion initiative, estimated to result in around 1,600 new multifamily units.
This recent venture marks the eighth conversion project that Northwind has financed, reflecting the firm's significant expertise in facilitating such transformations. As New York contends with a critical housing shortage, particularly in light of supportive legislation like the City of Yes, Northwind's investments are crucial in driving additional housing developments.
David Werner, President of DWREI, praised Northwind Group's collaborative approach, emphasizing their efficiency and flexible support throughout the loan process. "Northwind's proactive involvement and professional coordination were instrumental in achieving our objectives," he noted, highlighting the positive experience of working with the Northwind team.
Ran Eliasaf, the founder and managing partner of Northwind, expressed enthusiasm about the first transaction for NDF III, commending the collaborative efforts alongside DWREI. He stated, "The building's structure and location make this project a prime candidate for conversion. The existing team at DWREI and Metro Loft is well-equipped to deliver an outstanding residential product as part of this historic conversion." He underscored Northwind's commitment to supporting efforts that expand housing availability within New York City.
Northwind was legally represented by John Vavas from Polsinelli Law Firm, while DWREI received advisory support from Newmark during this transaction.
Founded in 2008 by Ran Eliasaf, Northwind Group has carved a niche as a leader in the real estate private equity landscape with over $5.6 billion in real estate transactions encompassing more than 320 properties. The firm primarily focuses on credit instruments and operates through closed-ended debt funds.
David Werner is a seasoned investor based in New York City, with a career spanning more than 40 years in commercial real estate. His vast experience includes significant ownership of both office and residential properties, boasting a portfolio that features many of NYC's landmark office buildings.
This impressive funding initiative is part of Northwind's latest debt fund, named NDF III, which launched in January 2025. The fund's mission is to deliver structured financial solutions tailored for high-quality sponsors and impactful projects in New York City and other key markets across the United States. The establishment of NDF III follows a remarkably successful 2024, during which Northwind originated loans exceeding $1.1 billion, showcasing its influence in the real estate finance sector. Currently, Northwind manages three commercial real estate (CRE) debt funds alongside two devoted to healthcare investments.
The proceeds from this principal loan, in conjunction with equity contributions from David Werner Real Estate Investments (DWREI), were instrumental in acquiring the fee position from the Seaver family. A joint venture involving DWREI and Nathan Berman's Metro Loft, the latter already holding leasehold interests, will lead the charge in converting the office tower into desirable living spaces. Notably, in August 2024, Northwind previously issued a $75 million first mortgage loan to the same joint venture for a nearby property at 219 East 42nd Street. The synergy between the two projects represents NYC's largest office-to-residential conversion initiative, estimated to result in around 1,600 new multifamily units.
This recent venture marks the eighth conversion project that Northwind has financed, reflecting the firm's significant expertise in facilitating such transformations. As New York contends with a critical housing shortage, particularly in light of supportive legislation like the City of Yes, Northwind's investments are crucial in driving additional housing developments.
David Werner, President of DWREI, praised Northwind Group's collaborative approach, emphasizing their efficiency and flexible support throughout the loan process. "Northwind's proactive involvement and professional coordination were instrumental in achieving our objectives," he noted, highlighting the positive experience of working with the Northwind team.
Ran Eliasaf, the founder and managing partner of Northwind, expressed enthusiasm about the first transaction for NDF III, commending the collaborative efforts alongside DWREI. He stated, "The building's structure and location make this project a prime candidate for conversion. The existing team at DWREI and Metro Loft is well-equipped to deliver an outstanding residential product as part of this historic conversion." He underscored Northwind's commitment to supporting efforts that expand housing availability within New York City.
Northwind was legally represented by John Vavas from Polsinelli Law Firm, while DWREI received advisory support from Newmark during this transaction.
About Northwind Group
Founded in 2008 by Ran Eliasaf, Northwind Group has carved a niche as a leader in the real estate private equity landscape with over $5.6 billion in real estate transactions encompassing more than 320 properties. The firm primarily focuses on credit instruments and operates through closed-ended debt funds.
About David Werner Real Estate
David Werner is a seasoned investor based in New York City, with a career spanning more than 40 years in commercial real estate. His vast experience includes significant ownership of both office and residential properties, boasting a portfolio that features many of NYC's landmark office buildings.
Topics Business Technology）
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