$246M Refinancing for Value-Add at Flatbush Gardens

Clipper Realty Inc. borrowed $246 million from New York Community Bank to refinance two mortgage loans on Flatbush Gardens, an apartment property at 1403 New York Ave. in the Flatbush neighborhood of Brooklyn.

“The remaining net proceeds from the transaction enhances our liquidity and ability to deliver on our value-add strategy,” said Larry Kreider, chief financial officer for Clipper. “The vast majority of our total outstanding debt is now currently fixed at attractive, low interest rates.”

The 10-year loan is interest-only for the first 30 months, and carries an interest rate fixed at 3.5% for the first five years. The new loan paid off the existing debt on the property, also with New York Community Bank, which totaled $168 million with an interest rate of 3.75%.

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