Midtown Office Tower Gets $231M Apartment Loan

Renters in Midtown East can expect up to 450 new apartments, a quarter of them affordable, once the conversion is complete.

Updated on Nov. 3, 2026 in Commercial

Gouache-painted editorial illustration of a slender stacked tower with rows of identical window bays rising above an exposed beam base against a pale sky. — Northwind Group originated a $231 million construction loan to convert the 32-story office tower at 675 Third Ave. in Midtown East into up to 450 rental apartments. AI Illustration. Upload story photo >

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Northwind Group originated a $231 million first-mortgage construction loan for 675 Third Ave., a 32-story Midtown East office building, to fund its conversion into up to 450 residential rental apartments.

Why it matters

The loan retired existing debt on the 337,000-square-foot building and finances a shift from office to housing in Midtown East, where roughly a quarter of the new apartments are slated to be affordable under the 467-m program. For New York City renters and homebuyers watching the local supply of rental units, the project signals that office-to-residential conversions are moving forward with significant private financing.

Northwind's $231 million first-mortgage loan replaces the earlier $90 million acquisition loan that financed the joint venture's April 2025 purchase of the building. The project targets up to 450 rental apartments, one quarter of which are designated affordable under the 467-m program.

The players

Northwind Group

A Manhattan-based real estate private equity firm and debt fund manager that lends on commercial property projects like this conversion.

Metro Loft Management

A partner in the joint venture that acquired 675 Third Ave. in April 2025 for conversion into rental housing.

David Werner Real Estate Investments

A partner in the joint venture that acquired 675 Third Ave. in April 2025 for conversion into rental housing.

The details

The joint venture of Metro Loft Management and David Werner Real Estate Investments bought the 32-story building in April 2025 using a $90 million acquisition loan from Northwind Group. Northwind's new $231 million construction loan retired that existing debt, and its proceeds will fund the conversion of the office space into residential rentals. Preliminary construction work has already begun on the site.

April 2025: The joint venture acquired 675 Third Ave. with a $90 million Northwind loan.
November 3, 2026: Northwind announced the $231 million construction loan origination.
Preliminary construction activity is already underway on the site.

The Home Front

The 675 Third Ave. loan fits a broader pattern of Manhattan office buildings being converted to apartments as office demand softens. Financing of this size from a private debt fund shows how such conversions are being capitalized in the city's current commercial real estate market.

If you rent in Midtown East or are looking for an apartment in Manhattan, watch for lease-up announcements from this building as the conversion progresses. If you are a homeowner in the area, a new building of this size may affect nearby rental competition, so it is worth reviewing your own lease or home-value expectations with a licensed agent.

The takeaway

Large office-to-residential conversions like 675 Third Ave. can add hundreds of rental units, and affordable set-asides mean some new apartments may be accessible to a broader range of renters. If you are tracking Manhattan rents, follow lease-up notices and affordable housing lotteries for buildings in Midtown East.