Key Takeaways
- • Northwind Group announced the final close of its third real estate debt fund (NDF III) with $1 billion in committed capital, double its $500 million target and the largest fund in the firm's history.
- • NDF III is Northwind's fifth credit fund overall and continues its flagship real estate credit strategy, launched in 2017, focused on senior-secured bridge loans across major US markets.
- • The fund's second real estate debt fund closed in November with $342.5 million against a $250 million target, and the first closed in December 2021.
- • Northwind completed the raise entirely in-house without a third-party placement agent, according to founder Ran Eliasaf.
- • The firm has originated $1.5 billion in loans overall through the debt fund, including structured bridge-to-HUD financing for skilled nursing and senior living properties.
Summary
New York-based Northwind Group announced last week the final close of its third real estate debt fund, NDF III, with $1 billion in committed capital. The close doubles the fund's $500 million target and makes NDF III the largest fund in Northwind's history, according to the firm's announcement as reported by McKnight's Senior Living.
NDF III is the firm's fifth credit fund overall and continues its flagship real estate credit strategy, which Northwind launched in 2017. The fund primarily originates senior-secured bridge loans across major US gateway markets, with a focus on acquisition, bridge, condo inventory, construction, office-to-residential conversions, pre-development, lease-up and other specialized financing solutions. Through its healthcare credit platform, Northwind also provides structured financing and bridge-to-HUD loans secured by income-producing portfolios of skilled nursing and senior living properties. The firm has originated $1.5 billion in loans overall across multiple markets.
The firm's prior vehicles show a consistent track record of oversubscription. Its second real estate debt fund closed in November with a total capitalization of $342.5 million, exceeding its $250 million target. The first Northwind real estate debt fund closed in December 2021.
Founder and managing partner Ran Eliasaf said the close is "a defining milestone for Northwind and a strong endorsement of our growing credit platform." He noted the firm completed the raise entirely in-house, without the use of a third-party placement agent, and said the current environment "presents one of the most attractive lending opportunities we have seen."
Michael Ainbinder, partner and head of commercial real estate credit, said demand for bridge capital remains strong in New York City and other supply-constrained markets, as sponsors navigate a shifting interest rate environment and a wave of upcoming loan maturities. He added that the market dislocation of recent years has changed the role private lenders play in commercial real estate finance, and that NDF III gives the firm greater capacity to support high-quality sponsors on complex, time-sensitive transactions.
NDF III is the firm's fifth credit fund overall and continues its flagship real estate credit strategy, which Northwind launched in 2017. The fund primarily originates senior-secured bridge loans across major US gateway markets, with a focus on acquisition, bridge, condo inventory, construction, office-to-residential conversions, pre-development, lease-up and other specialized financing solutions. Through its healthcare credit platform, Northwind also provides structured financing and bridge-to-HUD loans secured by income-producing portfolios of skilled nursing and senior living properties. The firm has originated $1.5 billion in loans overall across multiple markets.
The firm's prior vehicles show a consistent track record of oversubscription. Its second real estate debt fund closed in November with a total capitalization of $342.5 million, exceeding its $250 million target. The first Northwind real estate debt fund closed in December 2021.
Founder and managing partner Ran Eliasaf said the close is "a defining milestone for Northwind and a strong endorsement of our growing credit platform." He noted the firm completed the raise entirely in-house, without the use of a third-party placement agent, and said the current environment "presents one of the most attractive lending opportunities we have seen."
Michael Ainbinder, partner and head of commercial real estate credit, said demand for bridge capital remains strong in New York City and other supply-constrained markets, as sponsors navigate a shifting interest rate environment and a wave of upcoming loan maturities. He added that the market dislocation of recent years has changed the role private lenders play in commercial real estate finance, and that NDF III gives the firm greater capacity to support high-quality sponsors on complex, time-sensitive transactions.
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