MF1 Lends $170M for Flatbush Multifamily Development

Clipper Equity has sealed a $170 million loan to refinance a multifamily development at the site of a former landmarked Sears building in Flatbush, Brooklyn, Commercial Observer has learned. 

MF1 Capital provided the loan for Clipper’s 354-unit apartment  project at 2366 Bedford Avenue slated to debut this year as part of a four-building complex. The refi, which was originated by MF1’s Scott Waynebern and Michael Squires, replaced a previous $140 million construction loan for the seven-story building supplied by Scale Lending in March 2024. 

Squires, co-head of production at MF1, said the 2366 Bedford project is in a “dense residential neighborhood in need of multifamily housing” with green space associated with the development giving it a “community” feel. 

Landstone Capital Group negotiated the financing with a team led by Leah Paskus and Shlomy Wertzberger. 

The 2366 Bedford project received a 35-year tax credit under the former 421a tax abatement program since a portion of the apartments are designated as affordable housing. It is part of a larger redevelopment project  encompassing 877 rental units at the former Sears building by Clipper that includes multifamily buildings at 2363 Bedford Avenue, 2201 Beverly Road and 158 Lott Street. 

David Bistricer, CEO of Clipper Realty, said the project fills “a void” from a lack of new apartments in a section of Flatbush where demand for rental housing is strong. 

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