Clipper Realty Secures $82M Refi for Brooklyn Property
- Jan 02, 2020
Clipper Realty Inc. has refinanced Clover House, a Class A, newly renovated luxury apartment building in Brooklyn Heights, N.Y., with an $82 million loan arranged by Walker & Dunlop Inc.
The 10-year, interest-only, non-recourse secured first mortgage loan was provided by MetLife Investment Management. Walker & Dunlop’s New Jersey Capital Markets team led by Hirsch Simins and David Rosenberg was able to rate lock the transaction on the same day as application.
Clipper Realty stated in its third-quarter 2019 earnings report that the refinancing was expected to reduce annual interest expense by approximately $0.7 million and increase the company’s cash position by about $16 million. With the proceeds, the company repaid the existing loans on Clover House due May 2020 that totaled $64.7 million. The company stated all its outstanding debt is now fixed at attractive, low-interest rates.
The refinancing came as the property at 107 Columbia Heights reached stabilization following a three-month lease-up period. In-place rents are averaging approximately $73 million per square foot. Clipper Realty had anticipated the 158-unit Clover House to be fully leased by the end of 2019.
Located near the Brooklyn Heights Promenade and Brooklyn Bridge Park, the property has views of the East River and lower Manhattan skyline. Amenities include an underground parking garage, concierge, gym and yoga studio, children’s playroom, rooftop cabanas, bicycle storage and pet washing station. The 11-story building has studio, one- and two-bedroom floorplans. Unit features include hardwood flooring, Caesarstone countertops and spacious closets.
David Bistricer, co-chairman & CEO of Clipper Realty and also the founder & principal of Clipper Equity, has worked with Simins and Rosenberg of Walker & Dunlop on other deals.
In April, Simins and Rosenberg structured a deal with Freddie Mac to provide $136 million in green financing for Clipper Equity’s Rachel Bridge apartment community in Upper Manhattan.
The four-building, 960-unit affordable housing property is located at 1370 Saint Nicholas Ave. in the Washington Heights neighborhood and was more than 99 percent occupied at the time of the financing. Clipper Equity and Clipper Realty own multifamily properties in Manhattan and Brooklyn.