Northwind Group has provided a $231 million first mortgage construction loan for the planned conversion of 675 Third Avenue, a 32-story office tower in Manhattan’s Midtown East neighborhood, into residential apartments. The 337,000-square-foot property is being repositioned from office use under the direction of a joint venture between Metro Loft Management, led by Nathan Berman, and David Werner Real Estate Investments. The new financing continues Northwind’s involvement with the asset and gives the sponsorship capital to advance an office-to-residential strategy in a prime Midtown East location.
Proceeds from the construction loan are being used to retire the building’s existing debt and to fund the comprehensive conversion of 675 Third Avenue into as many as 450 apartments. According to the joint venture’s plan, 25% of the units created in the project are expected to be designated as affordable, integrating an income-restricted component into what has been a traditional office asset. The structure and specific terms of the construction loan, beyond its size and senior position, were not disclosed in the announcement.
The sponsorship group has been executing on this business plan since acquiring 675 Third Avenue in April 2025. At that time, the joint venture financed its purchase with a $90 million acquisition loan from Northwind Group, establishing an early lender-borrower relationship around the property. The latest construction facility effectively refinances that earlier acquisition financing while providing incremental capital for the physical transformation of the building. The transaction underscores the lender’s continued engagement with the same sponsorship team from acquisition through the redevelopment phase.
Northwind Group originated the construction loan through its latest debt vehicle, NDF III. The fund recently held its final close at $1 billion, exceeding and ultimately doubling its original $500 million target. The lending activity at 675 Third Avenue therefore also reflects capital deployment from a newly scaled debt platform. Northwind’s founder and managing partner, Ran Eliasaf, noted that the firm has financed the property since its acquisition and emphasized the lender’s familiarity with both the asset and the joint venture’s strategy. That existing knowledge base was cited as a key factor supporting Northwind’s conviction in the conversion plan at a time when office and residential dynamics continue to diverge in many urban cores.
