NYC Office-to-Resi Conversion Specialists Secure $231M for Midtown Project
Northwind provided the loan through its third debt fund.
A joint venture between Metro Loft Management and David Werner Real Estate Investments has secured a $231 million first-mortgage construction loan to convert a 32-story, 337,000-square-foot former office building at 675 Third Ave. in Manhattan into a residential property with up to 450 rental units. Northwind Group provided the note.
Construction has already begun on the site, which is located on the same block as the joint venture’s conversion project at the former Pfizer headquarters at 235 E. 42nd St. In July, two primary structural support columns buckled on the 21st floor of the 37-story tower. The developers have completed stabilization and work has resumed on the project at 235 E. 42nd St.
The joint venture acquired the building at 675 Third Ave. from The Durst Organization in April 2025 with a $90 million acquisition loan from Northwind. The senior first-mortgage loan also covered predevelopment at the site. The developers said the project has since advanced through planning and predevelopment and is ready for the conversion. Under the 467-m program, 25 percent of the apartments at the Midtown East property will be affordable.
Completed in 1966, 675 Third Ave. underwent cosmetic improvements in 2014 and was completely renovated two years later. The Class A, LEED Gold-certified tower also contains more than 10,000 square feet of retail space.
Collaborative Construction Management will serve as construction manager for the conversion, while Gensler Architecture, Design & Planning is the architect of record.
Northwind finances deal with latest fund
Northwind originated the deal through Northwind Debt Fund III, which had its final close last month with $1 billion in committed capital. The vehicle, which doubled its $500 million target, is its fifth credit fund and the largest in the firm’s history. The New York-based real estate private equity firm launched its flagship real estate credit strategy in 2017. Since the first close of NDF III in January 2025, the platform has originated at least $1.5 billion in loans in markets including New York City, Los Angeles, Chicago and South Florida.
NDF III primarily originates senior-secured bridge financing across major U.S. gateway markets, with a focus on acquisition, bridge, condo inventory, construction, office-to-residential conversions, pre-development, lease-up and other solutions. Asset classes targeted include multifamily and for-sale condos as well as office, hospitality and industrial properties.
Active in financing NYC conversion projects
The construction loan for 675 Third Ave. was the ninth conversion project Northwind has financed in New York City. Several of those loans have been for office-to-residential conversion projects being sponsored by DWREI and Metro Loft, as well as other developers.
READ ALSO: The Hidden Risks Behind Office-to-Residential Conversions
In September, a joint venture between DWREI and BLDG Management Co. secured $219 million in construction financing from Northwind for the partial office-to-residential conversion of 100 Wall St. in Manhattan’s Financial District. The loan retires the existing debt on the 463,000-square-foot building and funds the redevelopment of floors two through 11 into 168 rental apartments. Floors 15 through 29 will remain as office space and are currently fully leased. The team will add a pool, fitness center, sports simulator, theater and rooftop deck with an outdoor kitchen.
That transaction came less than a week after Northwind originated a $208 million loan for an office-to-residential conversion at 141 Willoughby in Brooklyn being undertaken by Capstone Equities and BH3 Fund Advisors. The developers are also retaining some of the commercial space in the 24-story, 355,000-square-foot building, where they are creating 239 rental apartments from floors 8 through 23. The second floor will be developed as an amenity space.
