NEW YORK CITY—Clipper Realty completed refinancings of existing debt on its Flatbush Gardens complex comprising 59 buildings in Brooklyn, and the two building Tribeca House apartments. With these deals, the vast majority of the company's debt is now fixed at low-interest rates, according to the real estate company's CFO, Larry Kreider.
“These refinancings are an important step to lowering our overall cost of capital while extending the maturities of the instruments. With these transactions, annual debt service is initially reduced by approximately $6.6 million consisting of a $3.5 million reduction in annual interest expense and a $3.1 million reduction in annual principal amortization,” says Kreider.
He notes the net proceeds from the transaction provides greater liquidity and will assist in delivering the company's value-add strategy.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
