Permits & development · Owners & management · Deals & development · 11/02/2026
Northwind Lends $231M to Convert 675 Third Avenue Office to 450 Rentals
David Werner Real Estate Investments and Nathan Berman's MetroLoft secured a $231 million construction loan from Northwind Group to turn the office building at 675 Third Avenue into 450 apartments. The building spans Third Avenue from 42nd to 43rd Street near Grand Central. Northwind says the work is an interior fit-out with no structural work, and construction has already begun.
Reported by Commercial ObserverRead the original ↗
What happened
David Werner Real Estate Investments and Nathan Berman's Metroloft have secured a $231 million construction loan to turn the office building at 675 Third Avenue in Midtown Manhattan into a 450-unit apartment building. Commercial Observer reported the deal on 11/02/2026. The lender is Ran Eliasaf's Northwind Group. No broker was listed.
The loan will pay off the existing acquisition debt and fund the rest of the build-out. Construction has already started, paid for with the owners' own equity. Northwind had earlier lent $90 million to help the group buy the building from the Durst Organization, which sold it for $100 million in 2025. The building spans the full Third Avenue block from 42nd Street to 43rd Street, near Grand Central Terminal. Eliasaf called it a fairly simple conversion with no structural work, mainly an interior fit-out.
According to Northwind, 25 percent of the rental units will be set aside as affordable housing under the 467-m program.
The same owners are converting the former Pfizer headquarters at 235 and 219 East 42nd Street into a 1,600-unit building. On 07/07/2026 that site had a structural collapse, with columns giving way and bricks falling inside. Neighboring buildings were evacuated and streets were closed. Workers stabilized the building by the next morning. Eliasaf told Commercial Observer the incident gave him no pause on this loan.
Key facts
- Address
- 675 Third Avenue, Midtown Manhattan (Third Avenue block from 42nd to 43rd Street)
- Units
- 450 rental apartments
- Affordable share
- 25 percent of rental units, under the 467-m program (per Northwind)
- Developers
- David Werner Real Estate Investments and Metroloft (Nathan Berman)
- Lender
- Northwind Group (Ran Eliasaf)
- Construction loan
- $231 million
- Purchase
- Bought from the Durst Organization for $100 million in 2025, with a $90 million Northwind acquisition loan
- Reported
- Commercial Observer, 11/02/2026
What it means
Tenants and voucher holders
This project should add affordable apartments in Midtown, equal to 25 percent of 450 units. Rents, income limits and the application process have not been announced, so there is nothing to apply for yet.
Caseworkers
Note this building as a future source of affordable units near Grand Central. Watch for an official listing before advising clients, since no timeline or eligibility rules are public.
Landlords
Lenders are still funding large office-to-residential conversions that use 467-m. That will add new rental supply in Manhattan over time. The material does not say when these units will reach the market.
The highlights
- 25 percent of the rental units will be affordable under the 467-m program.
- Sponsors bought the building from the Durst Organization for $100 million.
- The loan refinances a $90 million Northwind acquisition loan and funds the build-out.
Why it matters
About a quarter of the 450 new Midtown rentals will be affordable under 467-m, adding income-restricted units to the Manhattan supply.
Not known yet
- When construction will finish and units will be ready to rent
- Rent levels and income limits for the affordable units
- How and when the affordable units will be marketed or offered by lottery
- Whether any units will be set aside for voucher holders or other specific groups
Background
The 467-m program is a New York tax benefit for converting commercial buildings, such as offices, into apartments. In exchange for the tax break, owners must keep a share of the units affordable to households under set income limits. In New York City, new income-restricted rentals in subsidized buildings are usually offered through the city's Housing Connect lottery system. Applicants must meet household size and income rules, and their eligibility is checked before they can sign a lease.
Buildings in this story
- 675 Third Avenue · building facts and open city records
- 219 East 42nd Street · building facts and open city records
Summary written by Bulwark from Commercial Observer’s reporting. The original story is at commercialobserver.com. This is general information, not legal advice.
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