Bloomberg Businessweek Staying Bullish on Commercial Real Estate
Oct 23, 2025
Ran Eliasaf, founder and managing partner of Northwind Group, dives into the evolving landscape of commercial real estate. He discusses the surge in office-to-residential conversions in NYC, explaining the challenges and advantages of such projects. Eliasaf believes 2025 will be a standout year for private lenders, highlighting their speed and flexibility compared to traditional banks. He also tackles the impact of political factors on real estate values and stresses that expanding housing supply is key to addressing affordability issues.
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Pfizer HQ Converted To 1,600 Rentals
- Northwind is heavily involved in office-to-residential conversions and is the first mortgage lender on 235 East 42nd Street.
- That Pfizer headquarters conversion will become 1,600 rental units aided by a large tax abatement program.
Conversions Favor Rentals Over Condos
- Most office-to-residential conversions in New York target rentals rather than condos.
- Eliasaf explains buyers pay top dollar for condos and conversions better support rental product demand.
Plan For Higher Conversion Costs
- Expect conversions to be more complex and sometimes costlier than ground-up construction depending on the building.
- Factor in interior structural work and rely on tax abatement incentives to justify economics.