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Edited by: TJVNews.com
David Bistricer’s Clipper Equity has secured significant construction financing for its ambitious multifamily project at the historic former site of a Sears department store in Brooklyn’s Flatbush neighborhood, according to a report that appeared on Wednesday on The Real Deal web site. The $95 million loan, provided by Bank Hapoalim and its U.S. division, BHI, will support the development of a 226-unit residential complex at 2359 Bedford Avenue.
The development at 2359 Bedford Avenue is part of a larger redevelopment effort that aims to transform the landmarked Sears property into a substantial affordable housing project. As was reported by The Real Deal, Clipper Equity, in partnership with local developer Anshel Friedman, is spearheading the creation of an 876-unit residential complex, marking a significant addition to the Flatbush community.
Bistricer acquired the site two years ago for $40.3 million from Transform Operating Stores, which had taken over Sears’ remaining assets following the department store’s bankruptcy. The planned 148,000-square-foot development will feature a mix of unit types, including 86 one-bedroom apartments, 68 two-bedroom apartments, and 72 studio units, according to the information provided in The Real Deal report. Notably, 30% of these units will be designated as affordable housing, aligning with the project’s goal of enhancing housing accessibility in the area.
Indicated in The Real Deal report was that in addition to residential units, the project will include 23,000 square feet of commercial space and 10,000 square feet of retail space, contributing to the local economy and providing amenities for residents and the broader community.
The $95 million loan from Bank Hapoalim and BHI is a crucial component of the project’s financing. As per the information contained in The Real Deal report, this loan supplements other significant funding sources, including a $140 million loan from Slate Property Group for the development at 2366 Bedford Avenue and a $105 million loan from Valley National Bank for the site at 2201 Beverly Road, as reported by PincusCo.
The four-building development will span three city blocks, centered at the intersection of Bedford Avenue and Beverly Road. Also noted in The Real Deal report was that the comprehensive financing package reflects the scale and ambition of the project, which aims to address the pressing need for affordable housing in New York City.
The redevelopment site holds historical significance as the former location of the Sears Roebuck & Co. department store, which closed its doors in 2021 after 89 years of operation, The Real Deal report explained. The store’s closure marked the end of an era for the iconic retailer, which had been a fixture at the Flatbush location since its grand opening in 1932, an event that featured an address by future first lady Eleanor Roosevelt.
The Sears building, known for its distinctive art deco tower, was designated a city landmark in 2012, the report in The Real Deal pointed out. The redevelopment project aims to honor this legacy while repurposing the site to meet contemporary housing needs.
The project was one of the last developments to qualify for the 421a tax abatement, a program that incentivized affordable housing development. The Real Deal reported that the 421a program has since been replaced with the 485x program, but its benefits have been instrumental in advancing this significant project.
