Northwind Group Provides $231 Million Loan for Manhattan Office-to-Residential Conversion
Northwind Group has issued a $231 million construction loan to facilitate the conversion of a 337,000-square-foot Midtown office tower into residential apartments.
Manhattan-based real estate firm Northwind Group has originated a $231 million construction loan for the repurposing of 675 Third Avenue. The 32-story property, previously used as office space, is set to be converted into approximately 450 residential rental units, with 25% of the total inventory designated as affordable housing under the city’s 467-m program.
The project is led by a joint venture between Metro Loft Management and David Werner Real Estate Investments, which acquired the building in April 2025. Preliminary construction is already underway, with Collaborative Construction Management overseeing operations and Gensler providing architectural services.
This financing comes from Northwind’s third debt fund, which recently reached a final capitalization of $1 billion. As the New York real estate market navigates high office vacancy rates, this transaction marks the ninth office-to-residential conversion project financed by the lender, highlighting a broader industry trend of repositioning commercial assets to address acute housing shortages.