Valley National Bank Lends $125M on Flatbush Multifamily Project

Clipper Equity has nabbed $125 million of bridge debt for a multifamily development in Flatbush, Brooklyn, at the site of a Sears building that operated for 89 years, Commercial Observer has learned.

Valley National Bank provided the loan for Clipper’s 296-unit project at 2360 Bedford Avenue, where a Sears Roebuck & Company store closed in 2021. The deal retires a prior $105 million construction loan from Valley and $3 million of debt by Be Aviv.

Landstone Capital Group’s Pinchas Vogel and Leah Paskus arranged the transaction, which was originated by Valley National Bank’s Chris Gregg and Jeff Puchin. 

The Sears building, which opened in 1932, achieved landmark status in 2012 due to the historical nature of the property’s Art Deco architecture that included a 100-foot tower.

Clipper acquired the development site at 2360 Bedford and 2359 Bedford Avenue for $90.9 million from Vornado Realty Trust and Sears in 2022, Traded reported at the time. 

Clipper is also planning a 227 unit apartment development at 2359 Bedford and 354-unit building at the former Sears catalog printing facility on 2366 Bedford Avenue. All three projects received 35-year tax abatements under New York City’s now-expired 421a program.

Officials at Clipper Equity and Valley National Bank did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.