Permits & development · Deals & development · 11/03/2026
MetroLoft, David Werner land $231M to convert 675 Third Ave offices
MetroLoft Management and David Werner Real Estate secured $231 million from Ran Eliasaf's Northwind Group for their office-to-residential conversion at 675 Third Avenue in Midtown East. The loan refinances earlier acquisition debt and funds the buildout. Eliasaf said the project will use the 467-m tax abatement, so 25 percent of the rentals would be affordable.
Reported by The Real Deal · New YorkRead the original ↗
What happened
Northwind Group, led by Ran Eliasaf, has provided $231 million in construction financing for the office-to-residential conversion at 675 Third Avenue in Midtown East. The borrowers are Nathan Berman's MetroLoft Management and David Werner Real Estate. Commercial Observer first reported the loan on 11/02/2026. The Real Deal followed on 11/03/2026.
The new debt refinances an earlier $90 million acquisition loan that Northwind also made, and it pays for the rest of the buildout. Commercial Observer says the owners bought the building from the Durst Organization in 2025 for $100 million. Construction has already started using the owners' own equity. The building runs the full block of Third Avenue from 42nd to 43rd Street, near Grand Central Terminal. Commercial Observer says it will become 450 apartments. Commercial Observer first listed the loan at $275 million and later corrected it to $231 million.
Eliasaf called the job "a fairly simple conversion, with no structural work," basically an interior fit-out. Northwind says the project will use the 467-m tax abatement program. Under that program, 25 percent of the rental units will be designated as affordable.
The same owners are converting the former Pfizer headquarters at 235 and 219 East 42nd Street into about 1,600 units, which includes adding floors to 219 East 42nd Street. Commercial Observer reports that on 07/07/2026, columns buckled and bricks fell inside that site. Neighboring buildings were evacuated and streets were closed. Workers stabilized the building by the next morning. Eliasaf said that incident gave him "no pause" on this loan.
Key facts
- Address
- 675 Third Avenue, Manhattan (full block from 42nd to 43rd Street)
- Units
- 450 apartments, per Commercial Observer
- Affordable share
- 25 percent of rental units, under the 467-m program
- Loan
- $231 million construction loan from Northwind Group
- Earlier loan
- $90 million acquisition loan from Northwind, now being refinanced
- Purchase price
- $100 million, bought from the Durst Organization
- Developers
- MetroLoft Management (Nathan Berman) and David Werner Real Estate
- Reported
- Commercial Observer 11/02/2026; The Real Deal 11/03/2026
What it means
Tenants and voucher holders
About a quarter of the 450 units in this Midtown building are slated to be affordable. No lottery, rents, income limits or opening date have been announced yet.
Caseworkers
This is a future source of income-restricted units near Grand Central. Nothing is open to apply for now, so watch for official listings before advising clients.
Landlords
Lenders are still putting large sums into office-to-residential conversions that use 467-m. More new rental supply, including affordable units, is coming to Manhattan.
The highlights
- Northwind Group, the lender, earlier provided $90 million in acquisition financing.
- The new loan refinances that acquisition debt and funds the ongoing buildout.
- The project expects to use 467-m, making 25 percent of the rentals affordable.
Why it matters
Office conversions using 467-m can add affordable rentals in Midtown, with 25 percent of units set aside.
Not known yet
- Rents and income limits for the affordable units
- When the lottery or leasing will open, and when the building will be finished
- Unit sizes and the mix of studios and bedrooms
- Whether the affordable units will accept housing vouchers
Background
The 467-m program is a New York State property tax benefit for converting office buildings into housing. In exchange for the tax break, owners must set aside a share of units as permanently affordable, with rents tied to area median income. In NYC, affordable units in new and converted buildings are usually rented through HPD's Housing Connect lottery. Applicants must meet household size and income rules for each unit.
Buildings in this story
- 675 Third Avenue · building facts and open city records
- 219 East 42nd Street · building facts and open city records
Also drawn from: Northwind Provides $231M Construction Loan to Convert 675 Third Avenue (Commercial Observer)
Summary written by Bulwark from The Real Deal · New York’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
Related
Follow Bulwark on WhatsApp
Deadline countdowns, rule changes, voucher rents and breaking NYC housing news in your WhatsApp Updates. Free.
Send the message that opens, then save our number. WhatsApp only shows updates from saved contacts.
Brooklyn, NY
Filing or fixing something on a building?
DOB permits, Certificates of Occupancy, FDNY, DEP and DOT filings, prepared and followed until approved.
Photo: Andre Carrotflower, CC BY-SA 4.0