CLPR · Clipper Realty Inc.

Clipper Realty Inc.’s disclosure of a lender lawsuit over its subsidiary’s $125 million loan default represents a material financial and operational risk for the firm. The 2019 loan, secured by the company’s 250 Livingston Street property in Brooklyn, New York, was declared in default in December 2025 after the borrower failed to make required payments. The lender’s March 2026 lawsuit seeks both a receiver to manage the property and a forced sale to recover outstanding amounts, including an estimated $6.3 million in interest and default interest owed as of March 31, 2026. While Clipper is negotiating a potential cooperation agreement to facilitate a sale of the loan, there is no guarantee such an agreement will be reached, leaving the company exposed to potential loss of the property and additional costs.