Clipper Realty Inc.'s subsidiary, 250 Livingston Owner LLC, defaulted on a $125 million loan secured by its 250 Livingston Street property in Brooklyn, New York. The loan, originated on May 31, 2019, with Citi Real Estate Funding Inc., bears interest at 3.63% and requires interest-only payments until its maturity on June 6, 2029. On December 18, 2025, the Borrower received a default notice from the special servicer for Wilmington Trust, NA, as trustee for the loan holders, citing failure to pay amounts due. The Lender filed a complaint on March 25, 2026, against the Borrower, Clipper Realty Inc., and Clipper Realty L.P., demanding the appointment of a receiver and the sale of the Property to satisfy the debt. Clipper Realty Inc. estimates it owed approximately $6.3 million in interest and default interest as of March 31, 2026, excluding late and other miscellaneous fees. The Company is currently negotiating a Consent and Cooperation Agreement with the Lender for the sale of the Loan, though consummation is not assured.