Clipper Equity Refinances Crown Heights Development Again

After David Bistricer recently put the finishing touches on a 240-unit development in Crown Heights, the Clipper Equity head is adding fresh financing to boot.

Clipper landed a $160 million loan to refinance the multifamily property at 953 Dean Street in the Brooklyn neighborhood, the Commercial Observer reported. MF1 Capital supplied the financing for Prospect House.

The transaction retires a $123 million loan provided by Valley National Bank, Bank Leumi, Bank Mizrahi-Tefahot and Be Aviv in 2023.

A Landstone Capital Group team led by Leah Paskus and Pinchas Vogel arranged the financing.

Bistricer’s real estate investment trust purchased 1050 Pacific Street four years ago from Harry Daskal for $26 million and 953 Dean Street three years ago for $4.7 million. Shortly thereafter, it filed plans for the 250,000-square-foot project.

Work on the development recently wrapped and Clipper is onto the lease-up phase of the project. The property benefits from the former 421a tax incentive program, as 72 of the apartments are earmarked for those earning between 80 and 130 percent of the area median income.

The development also includes an 84-car parking garage and ground-floor retail space.

Bistricer’s firm is one of the busiest developers in New York City today. Clipper has more than 1.6 million square feet of projects in the works, according to an analysis of active new building filings.

Clipper is working on a massive three-tower apartment complex in Greenpoint, a project it’s been toiling away on for more than a decade. It’s also moving along with a four-building redevelopment of a historic Sears building in Flatbush.

In December, MF1 provided $140 million to Bushburg and the Moinian Group for a 14-story conversion of a Brooklyn dairy factory. The financing replaced the $130 million in debt the developers used to expand and convert the property into a 320-unit, mixed-use project.

— Holden Walter-Warner