<SEC-DOCUMENT>0001615774-17-000467.txt : 20170210
<SEC-HEADER>0001615774-17-000467.hdr.sgml : 20170210
<ACCEPTANCE-DATETIME>20170210060432
ACCESSION NUMBER:		0001615774-17-000467
CONFORMED SUBMISSION TYPE:	FWP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20170210
DATE AS OF CHANGE:		20170210

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Clipper Realty Inc.
		CENTRAL INDEX KEY:			0001649096
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				474579660
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	333-214021
		FILM NUMBER:		17589368

	BUSINESS ADDRESS:	
		STREET 1:		4611 12TH AVENUE, SUITE 1L
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11219
		BUSINESS PHONE:		718-438-2804

	MAIL ADDRESS:	
		STREET 1:		4611 12TH AVENUE, SUITE 1L
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11219

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Clipper Realty Inc.
		CENTRAL INDEX KEY:			0001649096
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				474579660
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		FWP

	BUSINESS ADDRESS:	
		STREET 1:		4611 12TH AVENUE, SUITE 1L
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11219
		BUSINESS PHONE:		718-438-2804

	MAIL ADDRESS:	
		STREET 1:		4611 12TH AVENUE, SUITE 1L
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11219
</SEC-HEADER>
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<TYPE>FWP
<SEQUENCE>1
<FILENAME>s105292_fwp.htm
<DESCRIPTION>FWP
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<P STYLE="margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; background-color: white"><B>Issuer Free Writing
Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; background-color: white"><B>Filed Pursuant
to Rule 433</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; background-color: white"><B>Relating to Preliminary
Prospectus dated February 8, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; background-color: white"><B>Registration
Statement No.&nbsp;333-214021</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; background-color: white"><B>February 10,
2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Clipper Realty
Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>This free writing prospectus
relates to the initial public offering of shares of common stock of Clipper Realty Inc. and should be read together with the preliminary
prospectus dated February 8, 2017 (the &ldquo;Preliminary Prospectus&rdquo;) that was included in Amendment No. 5 to the Registration
Statement ( &ldquo;Amendment No. 5&rdquo;) on Form S-11 relating to this offering, which may be accessed through the following
link:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">https://www.sec.gov/Archives/edgar/data/1649096/000161577417000417/s105259_s11a.htm</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>You should read Amendment No.
5 carefully, including the section entitled &ldquo;Risk Factors&rdquo; and the financial statements and related notes, before deciding
to invest in shares of our common stock.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>This free writing prospectus
supplements and updates the information contained in the Preliminary Prospectus, including by amending certain information in the
Preliminary Prospectus to reflect the pricing terms of the initial public offering and the acquisition of shares in this offering
by some of the Company&rsquo;s continuing investors (as defined in the Preliminary Prospectus). </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Unless the context otherwise indicates,
references to the &ldquo;Company,&rdquo; &ldquo;our company,&rdquo; &ldquo;we,&rdquo; &ldquo;our,&rdquo; and &ldquo;us&rdquo; are
to Clipper Realty Inc. and its consolidated subsidiaries.<BR>
<BR>
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pricing Terms of the Initial Public Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; padding-left: 0.2in; text-indent: -0.2in; text-align: left"><FONT STYLE="font-size: 10pt">Common stock offered by us</FONT></TD>
    <TD STYLE="width: 2%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 51%; text-align: left"><FONT STYLE="font-size: 10pt">5,590,149&nbsp;shares (6,445,149 shares if the underwriters exercise their option to purchase additional shares in full)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left"><FONT STYLE="font-size: 10pt">Common stock offered by the selling stockholders</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">109,851&nbsp;shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left"><FONT STYLE="font-size: 10pt">Common stock outstanding immediately after this offering</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">17,012,755 shares (17,867,755&nbsp;shares if the underwriters exercise their option to purchase additional shares in full)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left"><FONT STYLE="font-size: 10pt">Offering price</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">$13.50&nbsp;per share of common stock</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.2in; text-indent: -0.2in; text-align: left"><FONT STYLE="font-size: 10pt">Net proceeds</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">We estimate that the net proceeds to us from
        this offering, after deducting underwriting discounts and commissions and other estimated offering expenses payable by us, will
        be approximately $68.1&nbsp;million ($78.8 million if the underwriters exercise their option to purchase additional shares in full).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">We will not receive any of the proceeds from
        the sale of shares of our common stock by the selling stockholders.</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Participation in this Offering</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">David Bistricer, our Co-Chairman and
Chief Executive Officer, has agreed to purchase, directly or indirectly through one or more affiliated entities or trusts, an aggregate
of 250,000 shares of our common stock in this offering at the initial public offering price. No underwriting discount or commission
will be payable with respect to these shares. Immediately following completion of this offering, assuming no exercise of the underwriters&rsquo;
option to purchase additional shares, David Bistricer will beneficially own 11.5% of our common stock on a fully diluted basis
and 11.2% of the voting power in our company, with a total value of approximately $67.9 million, represented by 568,262 shares
of our common stock (including 318,262 shares of our common stock purchased in the private offering), 4,278,058 class B LLC units,
4,278,058 shares of special voting stock, and 185,186 LTIP units.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Sam Levinson, our Co-Chairman
and the Head of our Investment Committee, has agreed to purchase, directly or indirectly through one or more affiliated entities
or trusts, an aggregate of 250,000 shares of our common stock in this offering at the initial public offering price. No underwriting
discount or commission will be payable with respect to these shares. Immediately following completion of this offering, assuming
no exercise of the underwriters&rsquo; option to purchase additional shares, Sam Levinson will beneficially own 20.0% of our common
stock on a fully diluted basis and 20.0% of the voting power in our company, with a total value of approximately $118.5 million,
represented by 1,369,415 shares of our common stock, 7,296,279 class B LLC units, 7,296,279 shares of special voting stock and
115,742 LTIP units. This amount includes shares of our common stock, class B LLC units and shares of special voting stock held
by entities in which Mr. Levinson is the managing member.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Jacob Schwimmer, our Chief Property
Management Officer, has agreed to purchase, directly or indirectly through one or more affiliated entities or trusts, an aggregate
of 250,000 shares of our common stock in this offering at the initial public offering price. No underwriting discount or commission
will be payable with respect to these shares. Immediately following completion of this offering, assuming no exercise of the underwriters&rsquo;
option to purchase additional shares, Jacob Schwimmer will beneficially own 5.8% of our common stock on a fully diluted basis and
5.7% of the voting power in our company, with a total value of approximately $34.2 million, represented by 285,000 shares of our
common stock, 2,188,334 class B LLC units, 2,188,334 shares of special voting stock and 57,779 LTIP units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Moric Bistricer has agreed to purchase,
directly or indirectly through one or more affiliated entities or trusts, an aggregate of 250,000 shares of our common stock in
this offering at the initial public offering price. No underwriting discount or commission will be payable with respect to these
shares. Immediately following completion of this offering, assuming no exercise of the underwriters&rsquo; option to purchase additional
shares, Moric Bistricer will beneficially own 10.3% of our common stock on a fully diluted basis and 10.5% of the voting power
in our company, with a total value of approximately $61.1 million, represented by 250,000 shares of our common stock, 4,278,058
class B LLC units and 4,278,058 shares of special voting stock.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Each of the purchasers of common stock
named above is a continuing investor.&nbsp; &ldquo;Continuing investors&rdquo; are holders of interests in the predecessor entities
who received class B LLC units or shares of our common stock upon consummation of the formation transactions.&nbsp; Immediately
prior to this offering, continuing investors beneficially owned 74.4% of our common stock on a fully diluted basis. &nbsp;Immediately
following completion of this offering, after giving effect to the purchases of our common stock described above, the continuing
investors will own 67.2% of our common stock on a fully diluted basis (65.9% if the underwriters exercise their option to purchase
additional shares in full).&nbsp; Continuing investors currently own shares of our special voting stock giving them one vote per
share on all matters on which our stockholders vote for each class B LLC unit held by them, subject to certain adjustments and
restrictions, meaning that, immediately prior to this offering, such continuing investors generally have 74.8% of the voting power
in our company. Immediately following the completion of this offering, the continuing investors generally will have 67.2% of the
voting power in the company (65.9% if the underwriters exercise their option to purchase additional shares in full).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">For additional information, see &ldquo;Security
Ownership of Certain Beneficial Owners and Management&rdquo; in the Preliminary Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The issuer has filed a registration
statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should
read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information
about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC web site at www.sec.gov.
Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus
if you request it by contacting FBR Capital Markets &amp; Co., Attention: Prospectus Department, 1300 North 17th Street, Suite
1400, Arlington, Virginia 22209, or by calling 800-846-5050; or Raymond James &amp; Associates, Inc., 880 Carillon Parkway, St.
Petersburg, FL 33716, Attention: Equity Syndicate, or by calling 800-248-8863.</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Any disclaimers or other notices that
may appear below are not applicable to this communication and should be disregarded. Such disclaimers or other notices were automatically
generated as a result of this communication being sent via Bloomberg or another email system.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>


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