David Bistricer’s Clipper Equity landed a nine-figure loan for its seven-story multifamily project in Flatbush.
Scale Lending, the debt financing division of Slate Property Group, provided $140 million in construction financing to Clipper for a development at 2366 Bedford Avenue in the Brooklyn neighborhood, the firm announced. Landstone Capital Group’s Leah Paskus arranged the financing.
Property records viewed by The Real Deal show two loans adding up to $154 million. A representative for Scale did not immediately respond to a request to clarify the $14 million difference.
Bistricer is planning a 354-unit project at the site, where construction is expected to wrap in the third quarter of 2025. The project is part of a larger affordable housing redevelopment of the former Sears catalog printing facility, a complex expected to include 876 units.
Other features of 2366 Bedford Avenue will include ground-floor retail, 236 parking spaces and amenities such as a business lounge, wet and dry saunas, a golf simulator and a cycling studio.
Scale’s announcement calls the project “one of the last” under the lapsed 421a tax abatement, which mandates a certain percentage of affordable housing units. Since the property tax break expired in June 2022, multifamily filings have plunged. Those that qualified by getting footings in the ground still need to meet a June 2026 completion deadline. Efforts to extend it failed in Albany last year.
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The firm is planning to complete the project within the 421a time frame. Construction began before the loan closed.
Borough Park-based Clipper last year received a tax exemption worth an estimated $191 million over 40 years at Flatbush Gardens, a development of nearly 2,500 rent-stabilized units in East Flatbush that had almost 3,000 housing code violations at the time.