Clipper Equity Taps MF1 to Refi Flatbush Project

Clipper Equity’s David Bistricer has a financing friend in MF1 Capital, which is providing debt for another of the developer’s projects.

Clipper landed $170 million to refinance the 354-unit multifamily development at 2366 Bedford Avenue in Flatbush, Brooklyn, the Commercial Observer reported. The debt replaces a $140 million construction loan originated by Scale Lending two years ago.

The construction financing from MF1 will support the completion of the multifamily building, part of a four-building complex being developed on the former site of a landmarked Sears. The building is expected to open this year after construction was originally slated to wrap in the third quarter of 2025.

The building 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.

A Landstone Capital Group team led by Leah Paskus and Shlomy Wertzberger negotiated the financing.

Other parcels in the broader redevelopment scheme include 2363 Bedford Avenue, 2201 Beverly Road and 158 Lott Street. All told, the four buildings are expected to deliver 877 rental units. Development is being supported by a 35-year tax credit received through the old 421a tax abatement program, which requires affordable housing.

MF1 has been in Bistricer’s corner before. Last year, it provided a $160 million loan to refinance a recently completed 240-unit multifamily property at 953 Dean Street in Crown Heights. The loan replaced a previous $123 million loan coming from multiple banks in 2023.

Elsewhere, Bistricer filed plans last month for seven separate residential buildings, each with 99 units, at the 1800 Park Avenue development site in East Harlem. This 99-unit strategy is designed to keep each structure under the 100-unit threshold, allowing the project to avoid the wage requirements tied to the state’s 485x tax abatement program.

The site, totaling 693 apartments and roughly 628,000 square feet, has a stalled development history and has traded hands several times.

— Holden Walter-Warner