Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, has provided a $75 million senior mortgage acquisition predevelopment loan secured by 219 East 42nd Street, the former Pfizer headquarters in Midtown, Manhattan. The nine-story building is planned to be converted and redeveloped into a 29-story Class A multifamily rental property with up to 660 units.
The property was acquired by a joint venture between affiliates of Nathan Berman’s Metro Loft Management and David Werner Real Estate Investments (DWREI). Combined with the conversion of the adjacent vacant property at 235 East 42nd Street (also controlled by Metro Loft and DWREI), the property will be part of the largest conversion project in NYC history. This is Northwind’s second loan to DWREI in the last month, with the announcement coming shortly on the heels of the closing of a $95 million acquisition loan for 100 Wall St., a 515,000-square-foot office building in Manhattan’s Financial District which was acquired by a joint venture between Bldg and DWREI.
“It was a pleasure once again closing a loan with Ran Eliasaf and Michael Ainbinder of Northwind Group. They are an accurate and efficient lender, while providing flexibility where needed and the surety of execution,” said David Werner, president of DWREI. “Their proactive involvement and professional coordination were instrumental in achieving our objectives. I am deeply appreciative of the entire Northwind team, and I look forward to working with them again in the near future. DWREI is honored to own this asset and work on this project together with Metro Loft.”
“We are pleased to provide this financing to David Werner and Nathan Berman. This office building, located in the heart of Midtown East, is fully vacated and primed for an as-of-right conversion, which will be part of the largest office to residential conversion in NYC history. The attractive basis and top-tier sponsorship with deep experience and a clear executable business plan fit well within our debt fund’s investment thesis,” said Ran Eliasaf, founder and managing partner of Northwind Group.
Northwind was represented by John Vavas of Polsinelli Law Firm.
