By Joshua Burd
The owner of a 216-unit apartment tower in Newark has snagged $35 million in financing for a major renovation of the building, in a deal originated by Northwind Group.
Based in Manhattan, the real estate private equity firm and debt fund manager said it provided the first mortgage loan to an entity owned by Yisroel Berger. The borrower, which owns Carmel Towers at 440 Elizabeth Ave. and has extensive value-add experience in Newark, will use the funds to modernize and lease the property to stabilization.
Akiva Drew of Meridian Capital Group sourced the loan on behalf of 440 Elizabeth NJ Urban Renewal LLC. John Vavas of Polsinelli Law Firm represented the lender.
“Northwind was able to provide a flexible loan that provided us the required capital to finish our project,” Berger said. “The team was able to close on the loan quickly and smoothly. We look forward to continuing this relationship with Northwind and to work with their team to complete the renovation of Carmel Towers.”
In announcing the deal, Northwind Group noted that its real estate debt funds are focused on lending on residential assets primarily in the New York City metro area and other major gateway cities across the U.S. During the last 12 months, it has closed on loans totaling more than $1 billion.
“We are pleased to be able to provide this loan, as we recognize a big gap in the market for financing as commercial banks are slowing down their lending activities due to regulatory and macro-level factors,” said Ran Eliasaf, founder and managing partner of Northwind Group.