Clipper Equity has landed $125 million in financing for a multifamily project in a Brooklyn area where the developer remains active.
The project calls for 296 units at 2360 Bedford Avenue in Flatbush, according to a report from the Commercial Observer. Valley National Bank provided the bridge loan to support the development. The new debt will replace the previous $105 million construction loan that Valley issued, as well as the $3 million that comes from Be Aviv.
Along with 2360 Bedford, Clipper is planning on developing 227 apartments at the adjacent 2359 Bedford and 354 units at 2366 Bedford Avenue, according to CO. The Brooklyn-based firm originally acquired the two sites from Sears and Vornado Realty Trust for $90.9 million in 2022, according to Traded.
The 2360 Bedford site represented a location that Sears had previously operated at for nearly nine decades. Now, it's a part of the Bedford Square project that will consist of four buildings and units ranging from studios to two-bedroom units. Amenities include a gym, a wellness spa, a coworking center, a screening room, a game and media room and a golf simulator.
It's unclear when the construction of Bedford Square will finish.
The activity by Clipper comes as supply surges through Brooklyn. The 6,500 apartment deliveries between July and September marks double the amount normally seen during this typical time frame, according to a report from CoStar. The flurry comes from the tax incentive program 421-a, which expired in 2022, according to Victor Rodriguez, senior director of analytics for CoStar's NYC market. However, Rodriguez does expect Brooklyn to see a "massive decline in deliveries" in the short term, as the last batch of supply incentivized by the program comes online.
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