Northwind Group has implemented a third real estate-focused credit fund after doubling the fundraising target, Commercial Observer has learned.
Northwind Debt Fund III (NDF III) of the private lender closed with a committed capital of $ 1 billion after setting a target of $ 500 million for the credit vehicle in January 2025. The fund has generated loans of $ 1.5 billion involving multifamily properties, condominiums and office-to-residential in the largest US gateway market.
“This is our biggest fund to date, and I think we need the next level as fund managers,” Ran Eliasaffounder and managing partner at Northwind Group, to CO. “We raise the initial closing in 2025, and the fund is active and we start investing. Then we increase the capitalization of the fund during the investment period.”
Eliasaf said the successful fundraising reflects the success of two real estate credit funds in Northwind of $220 million and $326 million, with many investors returning to support the new vehicle. The investor base for NDF III includes pension funds, insurance companies, banks, family offices and very high net worth individuals.
NDF III, which will mainly focus on senior loans, has so far originated loans in the largest markets in America, including New York, South Florida, Los Angeles and Chicago. Among the most popular funds so far is the $401 million senior finished inventory loan-to-condo for Catalfumo Company‘ Ritz-Carlton Residences project in Palm Beach Gardens, Fla., and a $208 million construction loan for an office-to-home conversion in 141 Willowby Street in Downtown Brooklyn.
The fund is nearly 60 percent deployed now and should reach 90 percent by the end of 2026, with typical loan sizes in the $100 million to $200 million range, according to Eliasaf. He said about 93 percent of the funds will be directed to residential properties.
Most of the fund will target multifamily assets and condos in New York City, Eliasaf’s market remains bullish despite the higher interest rate environment.
“This is still one of the most resource-limited markets in the country, and, as a lender, we like that because it gives us some sort of stability,” Eliasaf said. “Rates are rising and there are questions about value, so you have to show conservatism now to choose the right property and, most importantly, also the right sponsor.”
Andrew Coen can reach it acoen@commercialobserve.com.