Northwind Lends $30 Million for 52-Unit Tower Near Union Square

Northwind Group has originated a $30 million first-mortgage acquisition and predevelopment loan for a residential development site at 110 East 16th Street in Manhattan's Union Square neighborhood. The financing supports Pro-H Group's acquisition and redevelopment of the property into a planned 22-story condominium building with 52 residences.

The site sits on East 16th Street between Union Square East and Irving Place. A vacant nine-story parking garage occupies it now. Pro-H Group plans to demolish the structure and build a residential property with a mix of one- to four-bedroom condominium homes, plus resident amenities.

Why did Northwind back this deal?

The lender pointed to scarcity. Manhattan's new development condominium inventory sits at its lowest level in more than a decade, according to the announcement, and Northwind cited that limited supply as a key factor in its financing decision.

Ran Eliasaf, Founder and Managing Partner of Northwind Group, said: "We are pleased to finance Burton Hung and the Pro-H Group team on a rare development site just steps from Union Square. With Manhattan's new development condominium inventory at its lowest level in over a decade and limited new supply on the horizon, this project will deliver much-needed housing to one of the city's most supply-constrained and sought-after neighborhoods."

He added: "As we continue to deploy capital from NDF III, we remain focused on providing flexible, certain financing to experienced sponsors who are delivering high-quality housing where it is needed most."

How is the deal funded?

Northwind originated the loan through Northwind Debt Fund III, also known as NDF III. That fund recently completed its final close with approximately $1 billion in capitalization — twice its initial $500 million target.

Northwind uses its debt funds to finance residential properties and development opportunities in markets where new supply is limited. Its toolkit includes:

• Acquisition loans
• Predevelopment financing
• Other credit investments involving real estate sponsors

The $30 million covers the acquisition and the early development stage. Predevelopment financing typically funds design, planning, permitting and other work required before construction begins.

Who is Pro-H Group?

Pro-H Group is a New York-based development and construction organization founded by Burton Hung in 2006. It operates an integrated model spanning development, design, construction and specialized facade systems. The firm has completed more than 100 development and facade projects across New York City and New Jersey, with in-house architects, engineers and construction specialists.

Hung, the company's president, said: "We seek out development sites in prime locations, with a myriad of transportation options, and those that have an iconic New York feel. 110 East 16th Street will be a signature project for us, and we are excited to bring this luxury residential condominium to fruition."

The acquisition extends Pro-H's development activities in Manhattan. Brown Harris Stevens Development Marketing is already working with the firm on Loggia NoMad, a 28-story, 94-unit condominium building at 842 Sixth Avenue currently in pre-sales.

Who brokered the transaction?

Robin Schneiderman, Managing Director at Brown Harris Stevens Development Marketing, represented Pro-H Group in the acquisition. Schneiderman said: "110 East 16th Street is a rare development site in the heart of Union Square, where the new development pipeline is very slim. Pro H Group recognized the site's potential for a marquee project, and it was a pleasure working with them to put together this deal. We look forward to continuing our work with Pro-H."

Jonathan Hageman, Managing Director of Capital Markets at JLL, represented the seller.

What does it signal?

Northwind Group was founded in 2008 by Ran Eliasaf. The Manhattan-based real estate private equity firm and debt fund manager has completed more than $11 billion in real estate transactions across over 400 real estate and healthcare properties in 28 states.

The latest financing reflects Northwind's broader strategy: putting capital behind experienced developers building in markets with constrained new housing supply. With NDF III holding roughly $1 billion to deploy and Manhattan's condo pipeline near historic lows, similar debt deals on scarce infill sites are likely to follow.