Clipper Equity Secures $170M Refi for Flatbush Multifamily Project

• $170 million refinance backs a 354-unit rental project in Brooklyn
• Loan from MF1 Capital replaces earlier construction financing
• Part of a larger 877-unit redevelopment of a former Sears site

What Clipper Equity is delivering in Flatbush

David Bistricer is moving forward with a major multifamily project at 2366 Bedford Avenue. The development includes a seven-story building with 354 apartments and is part of a broader plan to redevelop the former Sears property into 877 rental units across multiple buildings. The project is set to deliver this year, adding new housing supply to a dense Brooklyn neighborhood.

What the refinance means for the project

MF1 Capital provided the $170 million loan to refinance the property, replacing a $140 million construction loan. This transition from construction financing to permanent or stabilized debt is a key milestone. It signals the project is nearing completion and entering its lease-up phase. For lenders, it reflects confidence in both the asset and the local rental market.

What the location means for demand

Flatbush continues to attract renters due to its relative affordability and strong residential density. The developer noted the project helps fill a gap in new housing supply in the area, where demand remains steady. Amenities like green space and a community-focused layout are expected to support leasing velocity.

What the tax abatement means for returns

The project benefits from a 35-year 421a tax abatement, tied to the inclusion of affordable housing units. This reduces operating costs over the long term and improves overall returns. It also allows the project to offer a mix of market-rate and affordable units while maintaining financial viability.

What this means for Brooklyn multifamily investors

This deal reinforces that multifamily remains a strong asset class in New York, especially in neighborhoods with consistent rental demand. Large-scale projects with tax incentives and strong fundamentals continue to attract financing, even in a tighter capital environment. For investors, the takeaway is clear. Well-located multifamily developments with built-in incentives and scale are still among the most reliable opportunities in today’s market.