May 14, 2020
Clipper Realty refinanced the debt on its 2,496-unit Flatbush Gardens apartment complex with a $329-million, 12-year secured first mortgage loan from New York Community Bank, the Brooklyn property’s current lender. In connection with the refi, which was arranged by Meridian Capital Group, an appraisal commissioned by the lender revalued the property at $475 million.
The loan bears interest at 3.125% and requires interest-only payments for the first seven years, which is expected to initially reduce annual debt service by $3 million. Clipper repaid the $246-million loan on the property due March 2028, which was scheduled to commence principal amortization this coming September.
“The loan adds approximately $78 million, before reserves, to our liquidity position,” said CEO David Bistricer. “In addition, we have no debt maturities on any of our operating properties until 2027.”
Clipper acquired the 59-building complex in 2005 through Renaissance Equity Holdings, its investment arm, for $138 million.
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