In Conversation with Ran Eliasaf on Navigating Office Property Lending
In real estate finance, Northwind Group stands out for its strategic adaptability. Founded by Ran Eliasaf, a former Israeli Navy captain turned real estate executive, the firm has evolved from equity investments to establish itself as a significant lending platform, executing over $3.3 billion in loans.
Eliasaf’s real estate career began after his military service and a brief surfing sabbatical. While studying law in Israel, he gained experience working for an Israeli businessman in real estate before launching what would become Northwind Group in 2008. The firm initially focused on distressed debt secured by grocery-anchored shopping centers, amassing a portfolio of nearly 5 million square feet.
Northwind distinguishes itself through its strategic approach to deal evaluation. Unlike many lenders who have retreated from office properties, Northwind maintains a carefully curated office portfolio, focusing on what Eliasaf calls “basis-driven” opportunities. “When we identify an opportunity in the office market, we’re basis driven,” he explains. “If it’s a very low basis to a good repeat sponsor where we recognize they’re buying it at what seems like a bottom price, and there’s good tenancy in place and good cash flow, we will do it.”
Their distinctive perspective stems from their experience on both sides of the real estate equation. Having evolved from property owners to lenders, Northwind applies an owner’s insight to their lending practices. This is particularly evident in their work at 40 Exchange Place, where they transitioned from owner to lender. “That was specifically a very unique situation,” Eliasaf reflects. “We were an owner of a property, and then we had the opportunity to lend on it. It’s really because of the relationships we had with our partners, the Gural family, that we bought it together with them in 2015. They bought us out in 2018, and the opportunity came to buy out the Capital One loan.” This full-circle moment illustrates how Northwind leverages their market expertise and relationships in lending decisions.
Today, Northwind’s lending strategy centers on residential properties, both condos and multifamily rentals, with office properties comprising less than 7% of their portfolio. When they do venture into office lending, as evidenced by recent deals with GFP and 601W Companies, their approach is methodical and relationship-driven. “We use the knowledge we’ve gained on the equity side to be what we hope is a smart lender, a conscious lender,” Eliasaf explains. “We focus on avoiding big mistakes and utilizing the knowledge, also sharing it with our borrowers and trying to help them navigate through a challenging environment.”
“It’s all about relationships,” Eliasaf emphasizes. “You want to be there for sponsors that have proven themselves in the past to be good ones. The relationship matters when things don’t go as planned.”
Northwind’s competitive edge extends to their technological capabilities. “Technology is super important. As the world evolves, I think firms that don’t invest and build technologies will be left behind,” Eliasaf asserts. The firm has developed sophisticated in-house technology tools, with their most comprehensive system supporting their healthcare lending strategy. Their platform integrates live data streams from multiple public sources, mapping skilled nursing facilities and hospitals nationwide while analyzing demographic trends – a capability Eliasaf believes is unique in the market.
These technological tools deliver practical value daily. Their system automatically processes monthly income statements from 300 properties, eliminating manual data entry and enabling real-time monitoring. “It saves time and it’s efficient, and then the more important side of it is actually giving us useful insights, raising red flags,” Eliasaf explains. Beyond healthcare, they’ve expanded their technological capabilities to track condo sales and rental market trends, providing comprehensive market visibility that informs their lending decisions. “I haven’t seen anybody do this in the market, at least not for the healthcare sector,” Eliasaf notes.
As markets evolve, Eliasaf identifies key opportunities ahead. Office-to-residential conversions in New York City present significant potential, while the withdrawal of local and regional banks creates space for private lenders. Notably, he anticipates sustained higher interest rates: “If the market initially predicted that 2025 will be in the three to three and a half range, that doesn’t look like it’s happening. It looks like we’re in the four percent range.”
With $300 million in new loans under term sheet, Northwind Group continues to demonstrate how data-driven decision-making and relationship-based lending create value in dynamic markets. Their success combines owner’s insight, technological advancement, and strategic risk assessment – revealing opportunities in challenging conditions.
