Clipper Realty subsidiary in default on $125M loan; foreclosure threatened; $3.4M owed

Clipper Realty Inc.

250 Livingston subsidiary received default notice on $125M loan; owed ~$3.4M in interest/default interest as of Dec 22, 2025.
Lender may seek foreclosure; company negotiating Consent and Cooperation Agreement for sale of property but no assurance.
For 141 Livingston property, company anticipates settling litigation: will provide $10M letter of credit and pay up to $3M fees.
Lender would waive penalties, dismiss foreclosure, approve 5-year lease extension with NYC tenant effective Dec 28, 2025.
No assurance either agreement consummated; company faces significant liquidity risk.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Clipper Realty Inc. faced acceleration on loan of $125.0 million with Wilmington Trust, NA, as trustee for the holders of GSMS 2019-GC40 Mortgage Trust Commercial Pass-Through Certificates at 3.63% maturing June 6, 2029.

Instrument: loan
Principal: $125.0 million
Counterparty: Wilmington Trust, NA, as trustee for the holders of GSMS 2019-GC40 Mortgage Trust Commercial Pass-Through Certificates
Rate: 3.63%
Maturity: June 6, 2029
Event: acceleration

Exact text from the filing

“Company”), entered into the Loan Agreement, dated as of May 31, 2019 (the “Loan Agreement”), with Citi Real Estate Funding Inc., related to a loan in the principal amount of $125.0 million (the “Loan”). The Loan is evidenced by certain promissory notes (the “Notes”) and secured by the Company’s 250 Livingston Street property in Brooklyn, New York (the “Property”).

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306 debt financings filed in the last 30 days. Browse all debt financings →

Clipper Realty Inc. filing history →

Source: SEC EDGAR

accession 0001437749-25-038702

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