Clipper Equity signs $20M loan for newly completed rental in Crown Heights

Clipper Equity through the entity 1010 Pacific Owner LLC as borrower signed an initial loan with lender Valley National Bank valued at $20 million for the newly constructed rental building at 1010 Pacific Street in Crown Heights, Brooklyn.

On the tax block, there were two new building construction projects totaling 150,574 square feet. The largest is a 175-unit, 118,994 square-foot residential (R-2) building submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed April 29, 2020 and permitted August 13, 2021. The second largest is a 46-unit, 31,580 square-foot residential (R-2) building submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed December 10, 2021 and permitted March 23, 2022.

This is an additional $20 million of debt on top of the $60 million obtained in February 2023.
The deal closed on September 15, 2023 and was recorded on September 22, 2023. The loan price per built square foot is $N/A and the price per buildable square foot is $193 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on November 8, 2019, for $20.2 million. The signatory for Clipper Equity was David Bistricer.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jacob Schwimmer, head officer and Aidin Ujka, agent. The business entity is 1010 Pacific Owner LLC.

The property

The parcel has frontage of 235 feet and is 110 feet deep with a total lot size of 25,869 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.4 million. The most recent loan totaled $60 million and was provided by Valley National Bank on February 9, 2023.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation, $2,500 in ECB penalties, 10 housing violations, and $2,750 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 175-unit, 118,994 square-foot R-2 building. The project was submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed April 29, 2020 and permitted August 13, 2021.

The neighborhood

In Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.5 times the average sales volume among other neighborhoods with $537.1 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Crown Heights has 3.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 33 commercial properties representing 5,750 square feet of the 63,450 square feet. The largest owner is Solomon Schwimmer, followed by Nadine N. Oelsner and then Mohamed Abdou.
On the tax block, there were two new building construction projects totaling 150,574 square feet. The largest is a 175-unit, 118,994 square-foot residential (R-2) building submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed April 29, 2020 and permitted August 13, 2021. The second largest is a 46-unit, 31,580 square-foot residential (R-2) building submitted by Solomon Schwimmer and filed by Solomon Schwimmer with plans filed December 10, 2021 and permitted March 23, 2022.

The majority, or 71 percent of the 63,450 square feet of built space are industrial buildings, with walkup buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Clipper Equity owned at least 27 commercial properties with 5,192 residential units in New York City with 4,685,987 square feet and a city-determined market value of $702.9 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Bank of China, New York Community Bank, and G4 Capital Partners respectively. Within the portfolio, the bulk, or 92 percent of the 4,685,987 square feet of built space are elevator properties, with office properties next occupying 4 percent of the space. The bulk, or 69 percent of the built space, is in Brooklyn, with Manhattan next at 31 percent of the space.

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