#United States #New York #Northwind Group #GFP Real Estate #40 Exchange Place

Northwind Group Secures $50 Million Mortgage in NYC

In a significant financial maneuver, Northwind Group, a prominent private equity firm based in Manhattan, has announced the provision of a substantial $50 million first-mortgage loan. This financial injection is backed by the property located at 40 Exchange Place, a striking 20-story office building that encompasses over 292,000 rentable square feet in the bustling Financial District of Manhattan.

The building is owned by GFP Real Estate, a leading owner-operator in New York City, and a longtime collaborator of Northwind Group. The partnership between Northwind and GFP extends back to 2015, when the two entities entered into a joint venture to purchase the property together, sharing an equal stake. This collaboration was pivotal in transforming 40 Exchange Place into a boutique office space characterized by dynamic floor plates and high-end finishes. By 2018, GFP had acquired Northwind's portion of the property, solidifying its ownership.

Northwind Group's decision to provide a loan to this asset reflects its strategic approach to lending in the competitive New York City real estate market. The firm is known for its quick and competitive financing solutions, reinforcing its status as a premier lender in the region. Since the start of 2024, Northwind has closed over $1.2 billion in loans across New York City and other key urban centers, showcasing its commitment to supporting high-quality borrowers and exceptional properties.

Brian Steinwurtzel, Co-CEO and Principal of GFP Real Estate, expressed enthusiasm for their ongoing collaboration with Northwind, stating, "We believe in the downtown market and continue to invest significant amounts in projects like 25 Water Street, 222 Broadway, and 40 Exchange Place." His sentiments highlight the confidence both partners have in the revitalization of the downtown area and the potential for future growth.

Ran Eliasaf, founder and managing partner of Northwind Group, echoed these sentiments, expressing excitement about their continued partnership with GFP on this latest loan. He remarked, "Having been past owners of this property, we understand its unique history and position within the New York office market. This understanding enhances our ability to collaborate with GFP to maximize the property's potential."

The challenges in today's office market are apparent, yet Eliasaf emphasized the strong fundamentals of 40 Exchange Place. The property benefits from a robust cash flow and distinct floor plans that make it a compelling investment. With experienced sponsorship backing the project, Northwind felt confident in providing the financing, which was sourced through a well-established relationship with GFP.

The legal groundwork for this transaction was managed by Polsinelli Law Firm for Northwind, while GFP was represented by GWFG. The transaction not only underscores the strong ties between these two firms but also signifies a robust confidence in the office rental market in New York City.

About Northwind Group

Founded in 2008 by Ran Eliasaf, Northwind Group has executed over $5.5 billion in real estate transactions across more than 300 properties. The firm focuses primarily on credit instruments through its discretionary closed-ended debt funds, further bolstering its presence in the real estate sector.

About GFP Real Estate

With a legacy dating back to 1952, GFP Real Estate is recognized as a leading player in the New York commercial real estate market. The firm manages a substantial portfolio comprising over 13.8 million square feet across 57 buildings, in addition to offering management and leasing services for third-party owners.

This transaction marks yet another milestone in the ongoing evolution of New York's dynamic real estate landscape, illustrating the collaborative nature of financing and development in one of the world's most competitive markets.