Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, announced the origination of a $30 million first-mortgage acquisition and predevelopment loan for 110 East 16th Street, a development site located in the Union Square submarket that is slated to be developed into a 52-unit, for-sale residential condominium building.
The property was acquired by New York-based Pro-H Group, a vertically integrated developer and general contractor founded by Burton Hung in 2006. Situated on East 16th Street between Union Square East and Irving Place, the site is currently improved by a vacant nine-story parking garage that will be demolished to make way for a 22-story project anticipated to feature 52 condominium residences ranging from one- to four-bedroom homes and a full suite of resident amenities.
The loan was originated by Northwind’s latest debt fund, NDF III, which recently announced its final close with $1 billion in capitalization, doubling its $500 million target fund size, as part of the firm’s ongoing strategy of providing financing on residential properties in supply-constrained markets.
Ran Eliasaf, founder and managing partner of Northwind Group, commented, “We are pleased to finance Burton Hung and the Pro-H Group team on a rare development site just steps from Union Square. With Manhattan’s new development condominium inventory at its lowest level in over a decade and limited new supply on the horizon, this project will deliver much-needed housing to one of the city’s most supply-constrained and sought-after neighborhoods. As we continue to deploy capital from NDF III, we remain focused on providing flexible, certain financing to experienced sponsors who are delivering high-quality housing where it is needed most.”
“110 East 16th Street is a rare development site in the heart of Union Square, where the new development pipeline is very slim,” said Robin Schneiderman, managing director, Brown Harris Stevens Development Marketing (BHSDM). “Pro H Group recognized the site’s potential for a marquee project, and it was a pleasure working with them to put together this deal. We look forward to continuing our work with Pro H.”
Burton Hung, president, Pro H Group added, “We seek out development sites in prime locations, with a myriad of transportation options and those that have an iconic New York feel. 110 East 16th Street will be a signature project for us, and we are excited to bring this luxury residential condominium to fruition.”
Schneiderman and BHSDM are already working with Pro H Group as the exclusive marketing and sales team for Loggia NoMad, a 28-story, 94-unit residential condominium development currently in pre-sales at 842 Sixth Avenue.
Robin Schneiderman, managing director, Brown Harris Stevens Development Marketing (BHSDM) represented the buyer, while Jonathan Hageman, managing director, capital markets, JLL, represented the seller.
