Clipper Equity signs $95M construction loan with Bank Hapoalim for 130-unit project in Flatbush

Clipper Equity through the entity Bedford Beverly 2359 LLC as borrower signed a new construction loan with lender Bank Hapoalim valued at $95 million for the residential project at 2359 Bedford Avenue in Flatbush, Brooklyn.
This is job B00698118, one of at least four jobs the developer has filed on the former Sears parcel.
Clipper Equity submitted a new building construction project for a 130-unit, 94,654 square-foot residential (R-2) building at 2359 Bedford Avenue in Flatbush, Brooklyn. The plan was filed with the New York City Department of Buildings on March 21, 2022 under job number B00698118 and was permitted on February 7, 2024. It calls for the construction of a seven-story building.
The deal closed on April 12, 2024 and was recorded on April 17, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $17.4 million.The property has 14,946 square feet of built space and 132,214 square feet of additional air rights for a total buildable of 147,377 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $6,356 and the price per buildable square foot is $644 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 May 9, 2022, for $40.3 million. The signatory for Clipper Equity was David Bistricer. The signatory for Bank Hapoalim was Ilana Druyan and David Kesselman.

Prior sales and revenue

The 14,946-square-foot property generated revenue of $281,576 or $19 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Flatbush has 14,946 square feet of built space and 132,214 square feet of additional air rights for a total buildable of 147,377 square feet according to a PincusCo analysis of city data. The parcel has frontage of 264 feet and is 291 feet deep with a total lot size of 60,649 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $2.7 million. The most recent loan totaled $6.7 million and was provided by Valley National Bank on December 9, 2022.

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 $2,500 in ECB penalties and $3,750 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 130-unit, 94,654 square-foot R-2 building. The project was submitted by J Bistricer with plans filed March 21, 2022 and permitted February 7, 2024.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has 1.3 times the average sales volume among other neighborhoods with $373.9 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Flatbush has 1.4 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the nine commercial properties representing 60,166 square feet of the 112,012 square feet. The largest owner is Zaida Bernuy, followed by Ezekiel Warner and then Deergrow Developments.
On the tax block, there were two new building construction projects totaling 157,266 square feet. The largest is a 130-unit, 94,654 square-foot residential (R-2) building submitted by J Bistricer with plans filed March 21, 2022 and permitted February 7, 2024. The second largest is a 96-unit, 62,612 square-foot residential (R-2) building submitted by Clipper Equity and filed by J Bistricer with plans filed April 21, 2022 and permitted August 11, 2023.

The majority, or 46 percent of the 112,012 square feet of built space are walkup buildings, with office buildings next occupying 37 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 $1.6 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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