Northwind Finances $231M Midtown Office Conversion

Northwind Group has originated a $231 million construction loan to convert 675 Third Ave. into residential rentals.

Updated on Nov. 3, 2026 in Commercial

Northwind Finances $231M Midtown Office Conversion

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Manhattan real estate firm Northwind Group originated a $231 million first-mortgage construction loan for 675 Third Ave., a 32-story office building in Midtown East. Loan proceeds will fund conversion of the building into up to 450 residential rental apartments.

Why it matters

The loan supports the conversion of an office tower into housing in New York City, where residential space is in demand. Preliminary construction activity is already underway on site.

The $231 million first-mortgage loan retired existing debt on the property, which a joint venture of Metro Loft Management and David Werner Real Estate Investments acquired in April 2025 using a $90 million Northwind acquisition loan. The source does not give a completion date for the conversion.

The players

Northwind Group

Northwind Group is a Manhattan-based real estate private equity firm and debt fund manager that provides financing for commercial and residential property projects.

Metro Loft Management

Metro Loft Management is a New York City real estate firm that acquires and redevelops commercial properties, including office-to-residential conversions.

David Werner Real Estate Investments

David Werner Real Estate Investments is a New York real estate investment company that partners on property acquisitions and redevelopment projects in Manhattan.

The details

Loan proceeds retired the existing debt on 675 Third Ave., a 337,000-square-foot office building. The conversion plan calls for up to 450 residential rental apartments, with 25 percent designated as affordable under the 467-m program.

April 2025: Joint venture acquired the building with a $90 million Northwind acquisition loan.
November 3, 2026: Northwind announced the $231 million construction loan origination.

Market Landscape

The project applies the 467-m affordable housing program to a converted Midtown East office tower, extending that program into commercial-to-residential conversions. Developers and lenders are pursuing such conversions as office space in Manhattan is repurposed for housing.

For New York City renters, the conversion could add up to 450 rental apartments, 25 percent of which will be affordable. The source does not indicate when the units will be available to lease.

The takeaway

Office-to-residential conversions can add rental supply in dense districts, and affordability set-asides tied to programs like 467-m can shape who benefits. Readers tracking Manhattan housing should watch whether projects like this one reach completion.