Clipper Realty Inc. Form 8-K Filing

This Form 8-K filing by Clipper Realty Inc. details two significant events concerning its subsidiaries and their financial obligations. Firstly, 250 Livingston Owner LLC, a subsidiary, is in default on a $125.0 million loan due to missed payments for interest and taxes. The loan, secured by the 250 Livingston Street property, has a principal amount of $125.0 million and matures on June 10, 2029. The company owes approximately $3.4 million in interest and default interest as of December 22, 2025. Negotiations for a loan modification are ongoing, but there is no assurance of their success. Secondly, 141 Livingston Owner LLC is nearing an agreement with its lender to settle litigation. This potential agreement involves the company providing a $10 million letter of credit for default events and tenant improvements, paying up to $3 million in fees, and the lender waiving penalties and default interest while dismissing foreclosure actions. The agreement also includes a five-year lease extension with the property's primary tenant.