Clipper lands loan for $79M UWS rental buy

Clipper paid Touro $79M for 10 W. 65th Street
By E.B. Solomont and Mark Maurer | October 30, 2017 01:30PM

10 West 65th Street and David Bistricer

David Bistricer’s Clipper Realty sewed up $34.5 million in financing for its acquisition of an Upper West Side rental building, the landlord told The Real Deal.

New York Community Bank provided the 10-year loan, which has an interest rate of 3.3 percent. Clipper closed on the 82-unit building, located at 10 West 65th Street, for $79 million on Friday, he said.

“It’s an unbelievable basis,” said Bistricer, describing the six-story property as having good bones and being in a great location, about half a block from Central Park.

Meridian Capital’s Ralph Herzka arranged the financing after the real estate investment trust went into contract on the property in May. Touro bought the building for $44 million in 2008 from Extell Development, which snapped up the rental for $23 million in 2004 and renovated about half the units before selling the property.

Rosewood Realty Group’s Aaron Jungreis and Devin Cohen brokered the sale on behalf of Touro.

At $79 million, Clipper paid $585 per square foot for the 82,230-square-foot building, plus an additional 53,000 square feet of air rights. Earlier this year, Bistricer told TRD the acquisition would be financed with a mortgage and cash on hand. Clipper will invest “incremental” capital to enhance the property.

In 2016, New York Community Bank gave Clipper a $104 million loan to buy the Brewster at 21 West 86th Street.

Clipper has made several acquisitions since its $86 million IPO last year.

In its first deal as a public firm, Clipper bought a 161-unit rental building at 107 Columbia Heights from the Jehovah’s Witnesses. Clipper landed $74 million from the Blackstone Group for the $87.5 million deal.