David Bistricer Faces Foreclosure of DoBro Office

In north Brooklyn, David Bistricer landed fresh financing for a Greenpoint rental complex. In Downtown Brooklyn, his firm could be on the outs with a troubled office property.

Clipper Equity is facing foreclosure on 250 Livingston Street, with the mortgage backing the building will be sent to special servicing next week, Crain’s reported.

Clipper became delinquent on the $125 million mortgage last month. The firm is considering handing the keys to the property back to the lenders, though Bistricer believes he can resolve the issue with the lenders and duck foreclosure proceedings, tapping IronHound Management to assist Clipper through negotiations.

Still, in a filing, Clipper said it “does not plan to continue to support the ongoing operating and debt service shortfall related to” the building, and would look to sell.

In March, the lenders notified lawyers for Bistricer that he was in default because Clipper did not deposit all of the requisite rental revenue into a designated account. They threatened to foreclose if Clipper didn’t pay off the mortgage in full, according to filings, but have yet to do so.

The building was dealt a catastrophic blow a few months ago when the city’s Human Resources Administration exited 350,000 square feet, decamping for 2440 Fulton Street. Bistricer claims the firm is in negotiations with a tenant for a portion of that space, though he did not identify the tenant or how much they would take.

This isn’t the first financial issue Bristricer has braced for in the Brooklyn office market.

Last year, a Morningstar Credit report identified a delinquent loan behind 141 Livingston Street. Clipper ultimately defaulted on the $100 million mortgage backing the property after Kings County Civil Court passed on a renewal at the building, leading its lenders to file for foreclosure.

— Holden Walter-Warner