Clipper Equity Lands $140M Construction Loan for Brooklyn Project

SCALE Lending provided financing for the 354-unit community.

Prior to this project, Clipper Equity refinanced another Brooklyn property, Flatbush Gardens. Image courtesy of Yardi Matrix

Clipper Equity has secured construction financing for a 354-unit community that is under construction in Brooklyn’s Flatbush neighborhood. SCALE Lending provided the $140 million loan which was arranged by Landstone Capital Group’s Leah Paskus.

Construction is already underway at Clipper Equity’s project at 2366 Bedford Ave. Manhattan Management Realty is general contractor for the project, while S. Wieder Architect PC designed the community. The property should be completed in the third quarter of 2025.

The project will be one of the last under the expired 421a program in New York that allows for tax abatements in exchange for carving out a certain percentage of units as affordable housing. Once completed, the seven-story community will include a café and business lounge, golf simulator, cycling studio and wet and dry saunas, along with 236 parking spaces and a ground-floor retail space.

The 2366 Bedford Avenue project will also be part of a larger redevelopment project that’s meant to convert the historic Sears catalog printing facility into affordable housing. The Art Deco building at the corner of Bedford Avenue and Beverly Road first opened in November 1932, before eventually closing its doors for good in 2021. Clipper Equity acquired the historic property with plans to renovate it, along with the entire block through ground-up residential developments that will total 876 units.

40 more years of affordable housing

Prior to its upcoming Bedford Avenue project, Clipper Equity already had experience with affordable housing in Flatbush. In June 2023, the firm announced a 40-year regulatory agreement with the New York City Department of Housing Preservation and Development for its 2,500-unit Flatbush Gardens community that would maintain rents at current levels and require capital improvements over a three-year period for full real estate tax abatements. In May 2020, the firm secured a $329 million refinancing package from New York Community Bank for its community in East Flatbush.

Besides its Flatbush projects, Clipper Equity’s portfolio includes several communities throughout Brooklyn including in the Greenpoint, Williamsburg and Downtown Brooklyn neighborhoods. While the development firm is based in Brooklyn, Clipper Equity focuses on residential condos and multifamily rental buildings in its home borough, as well as in Manhattan and New Jersey.

You May Also Like