Valley National Bank Leads $54M Loan for East Harlem Development 

Clipper Equity has landed a $54 million debt package for an East Harlem development site it recently purchased from the Durst Organization, Commercial Observer has learned.

Valley National Bank supplied a $44 million senior loan while Leumi Partners provided $10 million of mezzanine debt for the acquisition and pre-development of a vacant parcel at 1800 Park Avenue. Clipper purchased the 36,000-square-foot site for over $50 million, The Real Deal first reported in May.

Landstone Capital negotiated the financing with a team led by Leah Paskus and Pinchas Vogel. Chris Gregg and Jeff Puchin originated the deal for Valley National Bank while Shuki Zeitak led the transaction for Leumi.

Clipper plans to develop a multifamily project at the site with the exact number of buildings or units still to be determined, according to Vogel. The project will receive a tax abatement under New York City’s 485x program.

“Valley is pleased we could deliver for the Bistricer family and Anshel Fridman on this acquisition,” Puchin said in a statement, referring to the developers’ principals. “We look forward to another successful project with them and their team.” 

Officials at Clipper Equity and Leumi Partners did not immediately return a request for comment.

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