Northwind Group Provides $231 Million Loan for Manhattan Office-to-Residential Conversion
Northwind Group has originated a $231 million first mortgage construction loan to facilitate the conversion of 675 Third Avenue, a 337,000-square-foot office tower in Midtown Manhattan, into residential rental apartments. The project aims to create up to 450 units, with 25% designated as affordable housing under the 467-m program. The conversion is being executed by a joint venture between Metro Loft Management and David Werner Real Estate Investments (DWREI). This transaction follows an initial $90 million acquisition loan provided by Northwind in April 2025. The funding was sourced from Northwind's NDF III debt fund, which recently reached a final close of $1 billion. This project marks the ninth office-to-residential conversion financed by Northwind Group in New York City. It highlights a growing trend of repurposing commercial assets to address acute housing shortages in supply-constrained urban markets.
Topics: affordable housing construction loan office-to-residential conversion real estate private equity