Clipper Equity’s $100M CMBS Loan on Brooklyn Office Building Now Delinquent
The building is occupied by NYC Department of Citywide Administrative Services and the NYC Civil Court
By Brian Pascus September 24, 2024 2:21 pm
reprints
A $100 million commercial mortgage-backed securities (CMBS) loan secured by David Bistricer’s Clipper Equity office building at 141 Livingston Street in Downtown Brooklyn is now 30 days delinquent, according to a report from Morningstar Credit.
The building’s tenants include the City of New York Department of Citywide Administrative Services, the New York City Civil Court and the nonprofit Legal Aid Society. The $100 million loan — split across the BMARK 2021-B24, BMARK 2021-B25 and BMARK 2021-B26 conduit CMBS deals — is backed by the 15-story, 206,084-square-foot office building that opened in 1959. Clipper Equity purchased the office tower in 2002 and completed a renovation in 2004, according to PropertyShark.
The loan reached delinquency in September and is “not yet on the special servicer watchlist,” according to Morningstar Credit.
The problems attached to the loan secured by 141 Livingston Street are largely due to tenant uncertainty. The Department of Citywide Administrative Services leases 96 percent of the building’s office space, but its lease expires in December 2025, according to Morningstar Credit. The city agency recently agreed to lease two floors at One Willoughby Square, a 36-story, 500,000-square-foot office tower that opened in 2021 in Fort Greene, Brooklyn.
Other tenants attached to the building include the New York City Civil Court for Kings County, together with the Housing Court and Small Claims Courts, and the Legal Aid Socieety’s Brooklyn Housing Court Office.
Clipper Equity noted that the loan is presently current on all debt service payments for interest and property taxes. The firm had discussions with the loan servicer regarding an interpretation of the loan agreement that may require an additional contribution to an escrow account, according to Lawrence Kreider, chief financial officer at Clipper Equity.
“We have been in constant dialogue with the loan servicer and expect to resolve this discussion shortly,” said Kreider.
Brian Pascus can be reached at bpascus@commercialobserver.com
