Clipper Realty Inc. (NYSE:CLPR) recently found itself in a challenging position as a subsidiary of the company, 141 Livingston Owner LLC, faced the acceleration of a loan due to an alleged default event. The triggering event involved the transfer of loan servicing to a special servicer on October 28, 2024, due to purported missed payments under a loan agreement.
The loan in question, amounting to $100.0 million, was entered into by 141 Livingston Owner LLC with Citi Real Estate Funding Inc. in February 2021. Clipper Realty Inc. and its operating subsidiary, Clipper Realty L.P., assumed limited guarantor roles for certain obligations tied to the loan, including reserve monthly deposit responsibilities.
In response to these actions, Clipper Realty Inc. has stated its belief that it has been adhering to payment schedules as per the loan agreement. The company contends that there is a misinterpretation by the servicer and special servicer regarding the necessity of monthly reserve payments. Clipper Realty Inc. is engaged in good faith discussions with the special servicer to address these matters, among others, through a pre-negotiation agreement.
Despite the ongoing negotiations, Clipper Realty Inc. cautions investors and stakeholders that the lender retains the right to pursue other remedies under the loan agreement if a resolution is not reached favorably. The company stresses its commitment to resolving the situation in a manner that aligns with its best interests.
This current development falls within the realm of forward-looking statements, emphasizing the risks and uncertainties that may impact the company’s financial standing and operations. Clipper Realty Inc. encourages stakeholders to stay informed about subsequent updates as the situation unfolds, reinforcing its dedication to transparency and compliance with regulatory obligations.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Clipper Realty’s 8K filing here.
About Clipper Realty
Clipper Realty Inc (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.
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