Northwind Group, BHI Provide $170M for NYC Condo Project
The Upper West Side building will feature 36 residences across 18 stories.
Northwind Group and Bank Hapoalim B.M.’s U.S. branch BHI have originated $170 million in construction financing for 200 W. 88th St., a luxury condominium project led by Nortco Development in Manhattan’s Upper West Side.
BHI provided $134 million of the total financing, according to the company. Northwind Group lined up the rest of the funding through Northwind Debt Fund III, the company’s recently launched real estate credit fund. NDF III, the firm’s fifth credit fund, surpassed $300 million in origination during this year’s first quarter. In 2024, Northwind Group originated a total of $1.1 billion in loans.
The 36-unit project will include three- to five-bedroom floorplans with private outdoor terraces and a diverse amenity package. The 18-story property will be 215 feet tall and will include 1,620 square feet of retail space, according to a recent building permit.
Located at 200 W. 88th St., the new condo development will replace the Mermaid Inn seafood restaurant that closed in 2022, The Real Deal reported. The building dates back to 1920 and totals 14,800 square feet, Yardi Matrix data shows. Nortco Development bought the property in 2018 for $15 million, according to the same data provider.
The property is close to multiple bus and subway stations, as well as to retail, dining and entertainment options. Central Park is nearby, Midtown is within 3 miles, the borough’s Financial District is within 9 miles and John F. Kennedy International Airport is within 23 miles from the site.
New York City’s luxury condo market is experiencing notable changes, according to SERHANT.’s Ryan Serhant, who has been keeping a close eye on recent trends in this market. Manhattan’s prime neighborhoods face low inventory of available residences that created an environment where buyers are willing to pay more for high-quality residences.
Manhattan’s condo market faces challenges
Major challenges include the high cost and scarcity of land, according to Peter Zaitzeff, sales director at the company. Opportunities lie in creative solutions such as conversions of underutilized commercial properties, as well as initiatives like the City of Yes rezoning plan.
Nearby in Brooklyn, an office-to-residential conversion project recently received construction financing. Bravo Property Trust and Integritas Capital issued a $125 million senior construction loan for the property at 175 Pearl St. The owner, Watermark Capital Group, plans to convert the 204,000-square-foot office building into a 19-story condominium that will also include rental units for low-income renters.
