Northwind Closes Record $1B Real Estate Debt Fund

Northwind Group has closed its third real estate debt fund at $1 billion, double its target and the largest fund in the firm’s history.

Northwind Debt Fund III makes mostly senior-secured, floating-rate bridge loans in major U.S. cities. It finances acquisitions, construction, condo inventory, office-to-residential conversions, pre-development and lease-up projects.

Investors include pension funds, insurance companies, banks, family offices and very wealthy individuals in the U.S. and abroad.

The firm’s first two real estate debt funds raised $220 million and $326 million. It is Northwind’s fifth credit fund overall.

Since its first close in January 2025, the fund has originated $1.5 billion in loans in New York, South Florida, Los Angeles and Chicago. Its largest is a $401 million loan for Ritz-Carlton-branded residences in Palm Beach Gardens, Florida.

Other loans include $208 million for an office-to-residential conversion in downtown Brooklyn. It also lent $180 million for the purchase of a 55-story office tower in Los Angeles’ Bunker Hill area, including future funding for leasing costs.

“Demand for flexible, reliable bridge capital remains strong in New York City and other supply-constrained markets across the U.S., as sponsors navigate a shifting interest rate environment and a wave of upcoming loan maturities,” said Michael Ainbinder, partner and head of commercial real estate credit at Northwind.

In May, the fund formed a $300 million partnership with ATLAS SP Partners, an Apollo-backed lender, to lower its cost of capital.

Founded in 2008, Manhattan-based Northwind has completed more than $11 billion in real estate debt and equity deals.