Clipper Realty Inc., which owns commercial and multifamily properties in the New York City metropolitan area, has filed for an IPO.
The company plans to trade on the NYSE under the symbol CLPR. The company's assets include two adjacent residential/retail properties in Manhattan, N.Y.'s Tribeca neighborhood, a 59-building residential complex in the East Flatbush neighborhood of Brooklyn, N.Y., two primarily commercial properties in downtown Brooklyn and a residential/retail property on First Avenue in Manhattan.
No pricing details were disclosed. The company said it will not receive any proceeds from the sale of its shares from selling shareholders, which include Indaba Capital Management LP, Signature Global Asset Management, American Financial Group, Greenlight Capital Inc., BHCO Master Ltd., AmTrust Financial Services Inc. and Metacapital Management LP
Clipper plans to use proceeds from the offering to repay up to $100 million outstanding under a mezzanine note, fund about $31 million of certain capital improvements to reposition and modernize its properties and fund the acquisition of multifamily or commercial properties in the New York metropolitan area.
The company previously closed a private offering of 10,666,667 shares of its common stock in August 2015 for net proceeds of approximately $130.2 million.
The company, which is an emerging growth company under the JOBS Act of 2012, elected to be treated as a REIT starting in the taxable year ended Dec. 31, 2015.
FBR Capital Markets & Co. is the underwriter for the offering.