# EDGAR Filing Document

**Accession Number:** 0001649096
**File Stem:** 0001437749-25-019578
**Filing Date:** 2025-6
**Character Count:** 15396
**Document Hash:** 67e375c3bfba31269ce561efeb1a8363
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-019578.hdr.sgml**: 20250605

**ACCESSION NUMBER**: 0001437749-25-019578

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250530

**ITEM INFORMATION**: Termination of a Material Definitive Agreement

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250605

**DATE AS OF CHANGE**: 20250605

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clipper Realty Inc.
- **CENTRAL INDEX KEY:** 0001649096
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 474579660
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38010
- **FILM NUMBER:** 251028078

**BUSINESS ADDRESS:**
- **STREET 1:** 4611 12TH AVENUE, SUITE 1L
- **CITY:** BROOKLYN
- **STATE:** NY
- **ZIP:** 11219
- **BUSINESS PHONE:** 718-438-2804

**MAIL ADDRESS:**
- **STREET 1:** 4611 12TH AVENUE, SUITE 1L
- **CITY:** BROOKLYN
- **STATE:** NY
- **ZIP:** 11219

?xml version='1.0' encoding='ASCII'? clpr20250605_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported):**

**May 30, 2025**

**CLIPPER REALTY INC.**

**(Exact Name of Registrant as Specified in Charter)**

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| | | |
|:---|:---|:---|
| **Maryland** | **001-38010** | **47-4579660** |
| (State or Other | (Commission | (IRS Employer |
| Jurisdiction of | File Number) | Identification No.) |
| Incorporation) |  |  |

---

---

| | |
|:---|:---|
| **4611 12th Avenue, Suite 1L**<br> **Brooklyn, New York** | **11219** |
| (Address of Principal Executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: (718) 438-2804

**Former name or former address, if changed since last report: N/A**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, par value $0.01 per share | CLPR | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 1.02. Termination of a Material Definitive Agreement**

On May 30, 2025, in connection with the Sale Transaction (as defined below), 10 West 65 Owner LLC, a subsidiary of Clipper Realty Inc. (the "Company"), repaid in full the $31.2 million in mortgage note (the "Mortgage") secured by the premises known as 10 West 65<sup>th</sup> Street in New York (the "Property") to Flagstar Bank ("Flagstar"), issued in connection with the acquisition of the Property in October 2017. In addition to the Mortgage repayment, the Company paid $0.8 million in accrued interest through the date of closing of the Sale Transaction. Upon repayment of the Mortgage, the Bank released $1.1 million in previously deposited property tax escrow and other debt reserves to the Company. The Company did not incur any penalties related to the prepayment of the Mortgage.

**Item 2.01. Completion or Acquisition of Disposition of Assets**

On May 30, 2025, the Company completed the sale of the Property (the "Sale Transaction") pursuant to the Purchase and Sale Agreement (the "Agreement") with 10 West 65, LLC, a limited liability company not affiliated with the Company ("Purchaser") dated as of April 2, 2025 (the "Effective Date") for gross proceeds of $45.5 million less approximately $1.9 million in closing costs. At Closing, the Company repaid the Mortgage with Flagstar, as detailed above.

**Item 9.01 Financial Statements and Exhibits**

(b) Pro forma financial information

The unaudited pro forma consolidated financial information of Clipper Realty Inc., giving effect to the Sale Transaction, as of March 31, 2025, and for the three months then ended, and for the year ended December 31, 2024, is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

(d) Exhibits:

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| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Exhibit**<br> **Description** |
| 99.1 | [Unaudited Consolidated Pro Forma Financial Information of Clipper Realty Inc. as of and for the three months ended March 31, 2025, and for the year ended December 31, 2024.](ex_827653.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| **Clipper Realty Inc.** | **Clipper Realty Inc.** |
| By: | /s/ David Bistricer |
| Name: | David Bistricer |
| Title: | Co-Chairman and Chief Executive Officer |

---

Date: June 5, 2025

## Exhibit 99.1

**Exhibit 99.1**

**UNAUDITED PRO FORMA FINANCIAL INFORMATION**

The following unaudited pro forma consolidated balance sheet as of March 31, 2025 and the unaudited pro forma consolidated statements of operations for the three months ended March 31, 2025 and year ended December 31, 2025 have been derived from the historical consolidated financial statements of the Company, as adjusted to give effect to the completion of the sale on May 30, 2025 (the "Sale") of the Company's property at 10 West 65th Street, New York City (the "Property"), and are intended to reflect the impact of the Sale on the Company's results on a pro forma basis as of and for the periods indicated.

The unaudited pro forma consolidated financial statements of the Company and its subsidiaries have been prepared using assumptions and estimates that the Company's management believes are reasonable under the circumstances and are intended for informational purposes only. They are not necessarily indicative of the financial results that would have occurred if the transactions described herein had taken place on the dates indicated, nor are they indicative of the future consolidated results of the Company. However, management believes that the estimates and assumptions used provide a reasonable basis for presenting the significant effects of the Sale of the Property. Management also believes the pro forma adjustments give appropriate effect to the estimates and assumptions and are applied in conformity with accounting principles generally accepted in the United States of America.

The unaudited pro forma financial information should be read in conjunction with the historical consolidated financial statements and accompanying notes and Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company for the three months ended March 31, 2025 (unaudited) and for the year ended December 31, 2024 (audited), including the related notes, filed with the Securities and Exchange Commission.

The unaudited pro forma consolidated balance sheet as of March 31, 2025, has been prepared in accordance with the Securities and Exchange Commission's pro forma rules under Regulation S-X Article 11 assuming the Sale of the Property occurred as of that date. The unaudited pro forma consolidated statements of operations for the three months ended March 31, 2025, and year ended December 31, 2024, have been prepared assuming that the Sale of the Property occurred as of January 1 of each period presented. All material adjustments required to reflect the Sale are set forth in the columns labeled "Pro Forma Adjustments". The data contained in the columns labeled "As Reported" is derived from the Company's historical unaudited consolidated balance sheet as of March 31, 2025, and the Company's historical unaudited consolidated statement of operations for the three months ended March 31, 2025, and the audited consolidated statement of operations for the year ended December 31, 2024.

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---

| |
|:---|
| **Clipper Realty Inc.**  |
| **Consolidated Balance Sheets**  |
| **(In thousands, except for share and per share data)**  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Balance Sheets As of March 31, 2025 (unaudited)**  | **Balance Sheets As of March 31, 2025 (unaudited)**  | **Balance Sheets As of March 31, 2025 (unaudited)**  |
|  | **As Reported** | **Pro Forma** <br> **Adjustments** | **As Adjusted** |
|  | **(unaudited)** | **(unaudited)** |  |
| **ASSETS** |  |  |  |
| Investment in real estate |  |  |  |
| Land and improvements | $508311 | $- | $508311 |
| Building and improvements | 718748 |  | 718748 |
| Tenant improvements | 3348 |  | 3348 |
| Furniture, fixtures and equipment | 13439 |  | 13439 |
| Real estate under development | 153799 |  | 153799 |
| Total investment in real estate | 1397645 |  | 1397645 |
| Accumulated depreciation | (243362) |  | (243362) |
| Investment in real estate, net | 1154283 |  | 1154283 |
| Cash and cash equivalents | 21288 | 44839 (a) | 35097 |
|  |  | (31030) (b) |  |
| Restricted cash | 17823 |  | 17823 |
| Tenant and other receivables, net of allowance for doubtful accounts of $246 |  |  |  |
| Deferred rent | 2086 |  | 2086 |
| Deferred costs and intangible assets, net | 5560 |  | 5560 |
| Prepaid expenses and other assets | 8166 |  | 8166 |
| Assets held for sale | 45903 | (45903) (c) |  |
| **TOTAL ASSETS** | $**1262083** | $**(31997)** | $**1230086** |
| **LIABILITIES AND EQUITY (DEFICIT)** |  |  |  |
| Liabilities: |  |  |  |
| Notes payable, net of unamortized loan costs of $8,245 | $1272906 | $(31030) (b) | $1241876 |
| Accounts payable and accrued liabilities | 19649 | 418 (c) | 20067 |
| Security deposits | 8800 |  | 8800 |
| Other liabilities | 12646 |  | 12646 |
| Liabilities held for sale | 886 | (886) (c) |  |
| **TOTAL LIABILITIES** | $**1314887** | $**(31498)** | $**1283389** |
| Equity: |  |  |  |
| Preferred stock, $0.01 par value; 100,000 shares authorized (including 140 shares of 12.5% Series A cumulative non-voting preferred stock), zero shares issued and outstanding |  |  |  |
| Common stock, $0.01 par value; 500,000,000 shares authorized, 16,146,546 shares issued and outstanding |  |  |  |
| Additional paid-in-capital | 90152 |  | 90152 |
| Accumulated deficit | (110388) | (499) (d) | (110887) |
| Total stockholders' equity | (20076) | (499) | (20575) |
| Non-controlling interests | (32728) |  | (32728) |
| **TOTAL EQUITY (DEFICIT)** | $**(52804)** | $**(499)** | $**(53303)** |
| **TOTAL LIABILITIES AND EQUITY (DEFICIT)** | $**1262083** | $**(31997)** | $**1230086** |

---

(a) Represents pro forma cash received as if the Sale was completed on March 31, 2025. The Sale was completed on May 30, 2025 for a Sale price of $45,500 less closing costs of $1,864. In addition, as completed pro forma on March 31, 2025, the sale would have resulted in an additional $1,203 for assets and liabilities credited to or retained by the Company in cash.

(b) Represents pro forma repayment of debt outstanding of the Property as if repaid March 31, 2025.

(c) Represents pro forma write-off of assets and pro forma retention of certain assets and liabilities of the Property as if the Sale was completed on March 31, 2025.

(d) Represents pro forma loss on sale of property as if sold on March 31, 2025, reflecting contractual sale price of $45,500 less closing costs of $1,864 and basis of investment in real estate of $44,135.

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| |
|:---|
| **Clipper Realty Inc.**  |
| **Unaudited Pro Forma Consolidated Statements of Operations**  |
| **(In thousands, except per share data)**  |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025**  | **Three Months Ended March 31, 2025**  | **Three Months Ended March 31, 2025**  | **Year Ended December 31, 2024**  | **Year Ended December 31, 2024**  | **Year Ended December 31, 2024**  |
|  | **As Reported** | **Pro Forma**<br> **Adjustments**<br> **(a)** | **As Adjusted** | **As Reported** | **Pro Forma** <br> **Adjustments**<br> **(a)** | **As Adjusted** |
|  | **(unaudited)** |  |  |  |  |  |
| **REVENUES** |  |  |  |  |  |  |
| Residential rental income | $29190 | $(1070) | $28120 | $109873 | $(4040) | $105833 |
| Commercial rental income | 10208 | (3) | 10205 | 38902 | (14) | 38888 |
| **TOTAL REVENUES** | **39398** | **(1073)** | **38325** | **148775** | **(4054)** | **144721** |
| **OPERATING EXPENSES** |  |  |  |  |  |  |
| Property operating expenses | 10111 | (200) | 9911 | 34163 | (728) | 33435 |
| Real estate taxes and insurance | 7627 | (278) | 7349 | 29770 | (1100) | 28670 |
| General and administrative | 3825 | (118) | 3707 | 14152 | (390) | 13762 |
| Transaction pursuit costs |  |  |  |  |  |  |
| Depreciation and amortization | 7636 | (290) | 7346 | 29892 | (1170) | 28722 |
| Impairment of Long-Lived Assets | 33780 | (33780) |  |  |  |  |
| **TOTAL OPERATING EXPENSES** | **62979** | **(34666)** | **28313** | **107977** | **(3388)** | **104589** |
| Litigation settlement and other |  |  |  | (269) |  | (269) |
| **INCOME FROM OPERATIONS** | **(23581)** | **33593** | **10012** | **40529** | **(666)** | **39863** |
| Interest expense, net | (11522) | 558 | (10964) | (47111) | 2542 | (44569) |
| **Net (loss) income** | **(35103)** | **34151** | **(952)** | **(6582)** | **1876** | **(4706)** |
| Net (loss) income attributable to non-controlling interests | 21756 | (21166) | 590 | 4082 | (1163) | 2919 |
| **Net (loss) income attributable to common stockholders** | $**(13347)** | $**12985** | $**(362)** | $**(2500)** | $**713** | $**(1787)** |
| Basic and diluted net (loss) income per share | $(0.86) |  | $(0.06) | $(0.25) |  | $(0.20) |
| Weighted average common shares / OP units |  |  |  |  |  |  |
| Common shares outstanding | 16147 |  | 16147 | 16120 |  | 16120 |
| OP units outstanding | 26317 |  | 26317 | 26317 |  | 26317 |
| Diluted shares outstanding | 42464 |  | 42464 | 42437 |  | 42437 |

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(a) Represents pro forma effects of completion of the Sale of the Property and repayment of debt of the Property as if completed at beginning of period.