Id say 160-162, and yes i would lose the BF before trying to bulk up. The ab/belly fat is typically the hardest fat for males to lose. females have issues with butt/legs/thighs.
Make sure your getting enough protein tho, otherwise you will lose muscle mass/LBM while you cut off the extra fat around your waist. What your trying to do is a "recomp". The diet/training is well discussed around here. look into other sections, you will find endless info