Northwind Group, a Manhattan-based real estate debt fund manager and private equity firm, recently announced that it provided a $100 million senior A-Note as part of a $207 million senior lease-hold mortgage.
The loan was secured by the Hudson Hotel, a 24-story, former 878-key hotel which is being converted into 441 multifamily units and 51,474 square feet of retail space.
How Northwind acquired the Hudson Hotel
The property is located on 58th street between 8th and 9th Avenue in the heart of the Columbus Circle submarket of Manhattan.
The property was acquired by a repeat borrower of Northwind Group and was originally capitalized by Montgomery Street Partners as the fee holder and Parkview Financial who provided a leasehold mortgage in 2022.
This loan is being provided by Northwind Group as part of its recently launched A-Note financing product, a vehicle that is targeted to provide the most senior tranche of the capital stack on real estate transactions.
This pool of capital can be provided as an A-Note or Loan-on-Loan and will be available for all major asset types across the country, with a major focus on residential transactions, with loan size of $50 million and above.
What Northwind is offering the Hudson Hotel
Northwind Group provided the A-Note with flexible terms, which will provide the owner and existing lender with the required capital to complete the conversion project.
Northwind Group remains committed to lending in New York City and is actively providing capital to quality borrowers with well-located assets.
“Northwind Group is excited to provide our A-Note loan, as we recognize a big gap in the market for financing due to commercial banks stepping back from regulatory and macro issues,” said Ran Eliasaf, founder and managing partner of Northwind Group.
“We are pleased to work with experienced sponsors and financing counter parties like Parkview Financial and Montgomery Street Partners to deliver much-needed rental units due to the significant shortage of new rental products in Manhattan. We look forward to also continuing to provide senior financing to other lenders.”