Northwind Group Provides $100M in Financing for NYC Hotel Conversion

The Hudson Hotel. Image courtesy of Michelle Matteson

Northwind Group has provided financing backing the conversion of a Manhattan hotel. The firm provided a $100 million senior A-Note as part of a $207 million senior lease-hold mortgage, which will be used to convert the historic Hudson Hotel into a 441-unit community.

New York-based Northwind Group provided the financing to the hotel’s owner with flexible terms, allowing the owner and existing lender to complete the conversion project. The property was originally capitalized by Montgomery Street Partners as the fee holder and Parkview Financial who provided a leasehold mortgage in May 2022.

The Hudson Hotel was first constructed in 1929 as a clubhouse for the American Women’s Association. It was later converted into The Hudson Hotel, but the 878-key hotel eventually closed down due to the effects of the COVID-19 pandemic. It is now being converted into a 24-story residential building with studio, one-, two- and three-bedroom units.

Located on 58th Street between Eighth and Ninth Avenues, the converted Hudson Hotel will offer 51,474 square feet of prime retail space. The community will be located in Manhattan’s Columbus Circle neighborhood near Central Park and the Time Warner Center.

Co-living conversion

According to a report from Crain’s, the co-living brand CSC is behind the conversion of the Hudson Hotel. CSC’s portfolio includes other co-living offerings in Manhattan, Brooklyn and Philadelphia.

Northwind Group has more than $3 billion in assets under management, primarily investing in debt instruments through its discretionary closed-ended debt funds. Its A-Note financing product was recently launched and is available for all major asset types across the U.S., but mainly for residential transactions.