Clipper Realty IPO

Clipper Realty Inc. is a real estate company based in New York. The firm obtains, oversees, owns, operates and repositions numerous family residential and commercial properties within New York’s metropolitan area. The company was founded in 2015 and currently has 180 employees. The company’s key executives include Mr. David Bistricer who is Clipper Realty’s Co-chairman and CEO, Lawrence E. Kreider Jr. who is the company’s Chief Financial Officer and Mr. J. J. Bistricer who is the firm’s COO. The company falls under the Real Estate Investment Trust class of businesses to pay federal taxes.

The company filed for an IPO on October 7th last year. It aimed to raise $100 million in revenue from its release. On January 31st, 2017, Clipper Realty set the terms for its offering. It gave the public details of its aims to raise a more precise figure this time, pegged at $103 million. The company had its Initial Public Offering on the 9th of February this year where it sold shares at a price of $13.50 per share. This price was at the bottom of its expected range, which was $13.50 – $15.50 per share. The company sold 5.7 million shares at this price and managed to raise a revenue of $77 million.

Lead managers on this deal were FBR Capital Markets and Raymond James. Other underwriters for the company’s release included Janney Montgomery Scott and Wunderlich Securities. Underwriters had a 30-day period to but an extra 855,000 shares of the company’s stock.

The company is being traded under the ticker CLPR on the market. On its first day on trading floors, the company’s stock rose to a price of $15 a share just after the markets opened. At the end of the day, however, the company had settled back around its IPO price.

Since its release, Clipper Realty has remained relatively around its initial offering’s price. As of March 12th, the company’s shares were trading above the IPO price by 0.4 percent.

This Brooklyn-based real estate investment trust has more than 3,000 residential units under its control throughout Manhattan and Brooklyn. According to the company’s prospectus, it owns 3,539 residential units and 474,193 square feet of commercial space. Additionally, the company owns 102,675 feet of retail space.

Clipper Realty’s properties include Flatbush Gardens, the Aspen which it acquired in January 2016, a 59-building rent-controlled apartment complex in Brooklyn, two neighboring residential and retail properties at 50 Murray Street and 53 Park Place in Tribeca, and two mixed-use buildings at 141 and 150 Livingston Street in Downtown Brooklyn. The company bought the Aspen at $103 million.

These properties, excluding the Aspen, raised a total of $80 million in rental revenue over 2016. However, the company does not plan on stopping there. According to its prospectus, the company has saved over $30 million for the renovation and upgrade of its current properties. It also plans on using some of the revenue generated in its offering to gain new acquisitions and diversify its rent space.