Valley National Bank Leads $123M Loan for Clipper’s Latest Brooklyn Development

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Brooklyn is officially in the building.

Clipper Realty just sealed a $123 million construction loan for its latest mixed-use development in Brooklyn’s Crown Heights neighborhood, Commercial Observer has learned. 

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Valley National Bank led the financing, with participation from Bank Leumi, Bank Mizrahi-Tefahot and Be Aviv. Landstone Capital Group’s Leah Paskus negotiated the loan. 

The loan will fund the development of Clipper Realty’s soon-to-be mixed-use project encompassing 953 Dean Street, 1048-1050 Pacific Street and 643 Classon Avenue

When completed, the project will comprise 240 multifamily apartments; two retail units totaling 166,832 rentable square feet; and an 84-stall parking garage, sources said. 

“Valley is pleased to be part of this exciting development,” Jeff Puchin, first vice president of Valley National’s New York commercial real estate lending group, told CO. “We look forward to another successful project with Clipper Realty.” 

PincusCo reported plans for the development site — which would deliver the most apartment units to Crown Heights in two years — in March 2022. 

Clipper Realty is the real estate investment trust owned by Clipper Equity’s David Bistricer. No stranger to the Brooklyn multifamily market, Bistricer has been a prolific developer in the borough. 

Last year, Bistricer filed plans to build two apartment buildings comprising 650 units at 2360 Bedford Avenue in Flatbush, The Real Deal reported. Clipper Realty’s other Brooklyn residential buildings include 250 Livingston Street, Clover House at 107 Columbia Heights, 141 Livingston Street and 233 Schermerhorn Street

It’s not Bank Leumi’s first look at the upcoming project, nor Landstone’s, for that matter. Bank Leumi provided the $30 million loan for Clipper’s acquisition of the development site in December 2021, according to Traded, while Landstone’s Paskus negotiated the financing, along with colleague Pinchas Vogel

The new construction loan closes at a time when bad news is plentiful and credit is tight, so what better way to kick start the weekend, we say. 

Clipper’s Bistricer didn’t immediately respond to a request for comment. Landstone officials could not be reached for comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.