Clipper Equity signs $430M refi for 720-unit rental in Greenpoint
Clipper Equity through the entity Waterview Developer, LLC as borrower signed a refinance of a senior loan with lender JPMorgan Chase valued at $330 million for the 720-unit residential elevator building (D6) at 77 Commercial Street in Greenpoint, Brooklyn. In addition, Clipper Equity borrowed $100 million in a mezzanine loan from JPMorgan Chase, for a total of $430 million.
The deal closed on May 10, 2024 and was recorded on June 6, 2024. The prior lender was Bank of China which held senior debt that had an original loan amount of $286 million.
The property has 798,819 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $413 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 March 29, 2012, for $25 million. The signatory for Clipper Equity was David Bistricer. The signatory for JPMorgan Chase was Simon B. Burce. The refinancing adds $44 million to the existing $286 million for a total of $330 million of senior debt.
The residential elevator building with 720 residential units in Greenpoint has 798,819 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 217 feet and is 490 feet deep with a total lot size of 111,999 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $12.6 million. The most recent loan totaled $286 million and was provided by Bank of China on May 27, 2020.
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, $18,500 in ECB penalties, and $36,720 in OATH penalties in the last year.
The block
On this tax block, PincusCo has identified the owners of 18 of the 25 commercial properties representing 2,653,581 square feet of the 2,667,081 square feet. Other owners are Park Tower Group, followed by Kevin Kennedy and then Greenpoint Manufacturing And Design Center.
On the tax block, there were seven new building construction projects totaling 1,671,803 square feet. The largest is a 335-unit, 338,353 square-foot residential (R-2) building submitted by Brookfield Properties and filed by Dan Berger with plans filed March 15, 2019 and permitted July 13, 2020. The second largest is a 374-unit, 318,639 square-foot residential (R-2) building submitted by Park Tower Group and filed by Guy Morton with plans filed April 3, 2020 and permitted June 21, 2021.
The majority, or 83 percent of the 2.7 million square feet of built space are elevator buildings, with industrial buildings next occupying 14 percent of the space.
The borrower
The PincusCo database currently indicates that Clipper Equity owned at least 28 commercial properties with 5,509 residential units in New York City with 4,685,987 square feet and a city-determined market value of $705.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Bank of China, Valley National Bank, and New York Community Bank 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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