Northwind Group, a Manhattan-based real estate private equity firm and debt fund manager, announced the origination of a $208 million first mortgage construction loan for 141 Willoughby Street, a 24-story, 355,000-square-foot Class A tower in Downtown Brooklyn. Loan proceeds retired the existing debt on the property and will fund its partial conversion into 239 rental apartments across floors eight through 23 and the commercial lease-up on floors one through seven, which has multiple private entrances and has been rebranded as 385 Gold.
The conversion is being led by a joint venture between Capstone Equities and BH3 Fund Advisors (collectively, the “Sponsor”), which took control of the property in 2025 and has spent the past year in predevelopment. Originally delivered in 2023, the tower was built to full Class A institutional specification but was never occupied, allowing the Sponsor to pursue the conversion without the tenant buyouts, deferred maintenance or any structural work typically associated with office-to-residential projects.
“The opportunity to reimagine a building the caliber of 141 Willoughby into a thriving mixed-use asset represents a truly unique opportunity in the market today. We believe this asset will deliver the highest quality residential and commercial product available in the market and we are excited to deliver into a quickly evolving and growing Downtown Brooklyn community,” said Avi Kollenscher, partner at Capstone Equities.
The property’s side-core configuration and nearly column-free floorplates roughly 30 feet deep, wrapped in four-sided floor-to-ceiling glazing, allow the building to convert efficiently. Slab-to-slab heights of 15 feet to 17 feet will yield finished ceilings well above what conventional new multifamily construction delivers. Residents will have access to an amenity package across the cellar and second floor that includes a fitness center, entertainment lounge, co-working space, wellness center, golf simulator, sports court, games room and children’s playroom, along with landscaped terraces on the 10th and 20th floors and a full-time attended lobby. The commercial component will operate with its own separate entrances and dedicated elevator bank, with no shared circulation between residential and commercial tenants.
The development team includes a construction manager that has converted more than 43 commercial buildings totaling over 14 million square feet into more than 14,500 apartments since 1997. Fogarty Finger, the original design architect for the tower, has been re-engaged as executive architect for the residential conversion. Newmark has been retained to market the commercial space.
“141 Willoughby is an exceptional asset in a market where demand for high-quality apartments is strong. The building was designed to an institutional standard, with ceiling heights, natural light, floor plates and amenities that will translate extremely well to residential use. The commercial component is incredible in its quality and efficiency. With the New York City office market having materially recovered, 385 Gold is seeing significant demand from large users native to Brooklyn as well as Manhattan tenants dealing with escalating occupancy costs for Class A space,” said Adam Falk of BH3 Fund Advisors on behalf of the joint venture.
The financing was arranged by Rob Turner and Ethan Pond of Eastdil Secured Savills. Northwind was represented by John Vavas of Polsinelli Group and the Sponsor was represented by Elizabeth Smith of Goldberg Weprin Finkel Goldstein LLP. The loan was originated through Northwind Group’s discretionary debt fund platform as part of the firm’s ongoing strategy of providing financing for well-located, institutional-quality office-to-residential conversions across New York City and other supply constrained markets.
“141 Willoughby Street is a rare conversion opportunity, a brand-new, institutionally built tower, which allows the Sponsor to execute a streamlined, largely interior scope of work without the tenancy and structural risks that typically accompany office-to-residential projects,” said Ran Eliasaf, founder and managing partner of Northwind Group. “Combined with Capstone and BH3’s experience and a highly regarded project team, we are confident in the Sponsor’s ability to deliver this conversion, and we are pleased to support them in the continued transformation of Downtown Brooklyn into one of the city’s most dynamic residential submarkets.”
