Company: CLPR
Filing Date: 2025-04-08
Form Type: 8-K
Source: 0001437749-25-011420
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Company: Clipper Realty Inc.
Filing Date: 2025-04-08
Form: 8-K
Item: Item 1.01
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Item 1.01. Entry into a Material Definitive Agreement

10 West 65
Owner LLC, a subsidiary of Clipper Realty Inc. (the “ Company”), entered into a Purchase and Sale Agreement (the “ Agreement”) with a limited liability company not affiliated with the Company (“ Purchaser”) as of April 2, 2025 (the “ Effective Date”). Subject to the terms and conditions of the Agreement, the Company has agreed to sell the premises known as 10 West 65thStreet in New York (the “ Property”) to the Purchaser for $45.5 million, of which the Purchaser deposited approximately $4.6 million in an escrow account. The Agreement is not subject to a mortgage contingency and the transaction is expected to close on or prior to the expiration of a 30-day period after the Effective Date, which can be extended for another 30-day period (the “ Closing”), subject to customary closing conditions. The Company expects to incur approximately $2.0 million in closing costs. At Closing, the Company expects to repay its approximately $31.2 million mortgage (the “ Mortgage”) with Flagstar Bank (“ Flagstar”) and to have approximately $12.0 million in available cash from the sale of the Property after the payment of closing costs and Mortgage repayment. The Mortgage is not subject to any prepayment penalties. There can be no assurances concerning the amount of consideration that the Company will receive as a result of the sale of the Property, or concerning the fees, costs, or expenses the Company may incur at Closing in connection with the sale of the Property.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, which will be filed as an exhibit to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 to be filed with the Securities and Exchange Commission.

Item 2.05Costs Associated with Exit or Disposal Activities.