New York & Tri-State + Finance | May 14, 2020

Clipper Secures $329M Refi on Flatbush Gardens

Clipper Realty refinanced the debt on its 2,496-unit Flatbush Gardens apartment complex with a $329-million, 12-year secured first mortgage loan from New York Community Bank, the Brooklyn property’s current lender. In connection with the refi, which was arranged by Meridian Capital Group, an appraisal commissioned by the lender revalued the property at $475 million.

The loan bears interest at 3.125% and requires interest-only payments for the first seven years, which is expected to initially reduce annual debt service by $3 million. Clipper repaid the $246-million loan on the property due March 2028, which was scheduled to commence principal amortization this coming September.

“The loan adds approximately $78 million, before reserves, to our liquidity position,” said CEO David Bistricer. “In addition, we have no debt maturities on any of our operating properties until 2027.”

Clipper acquired the 59-building complex in 2005 through Renaissance Equity Holdings, its investment arm, for $138 million.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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