Ran Eliasaf’s Northwind Group is poised to take advantage of lending opportunities in commercial buildings that require short-term financial support. The Manhattan-based real estate private-equity firm and debt-fund manager have already secured approximately $300 million in commercial-property loans within the first month of this year, indicating double the volume compared to the same period in 2023.
With this promising start, Eliasaf anticipates Northwind’s lending to reach a record-breaking $1.5 billion to $2 billion by the end of the year. Although there have been instances of equity loss and debt imbalance, especially in commercial properties financed within the past five years, Eliasaf identifies the increasing default rate as an opportunity for growth.
Northwind’s strategy primarily involves originating loans that involve “cash-ins,” where borrowers inject new equity and additional capital into their properties. Eliasaf disclosed that this approach accounts for 90% of their loans.
A recent estimation by real estate investment firm Cohen & Steers highlighted that more than 60% of all loans originated in 2021 and 2022 were floating-rate loans, taking advantage of the near-zero short-term interest rates during that period.
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