Chetrit Group out at 9 Dekalb Avenue, Brooklyn’s tallest development

Michael Stern’s JDS is taking full ownership of the 1,066-foot tall development

New York /
Aug.August 03, 2018 01:07 PM

From left: Renderings of 9 Flatbush Avenue, Joseph Chetrit, and Michael Stern (Credit: JDS Development Group and Studio Scrivo)

Michael Stern’s JDS Development Group is taking full ownership of the supertall development at 9 Dekalb Avenue in Downtown Brooklyn.

The developer bought out partner Chetrit Group for nearly $60 million, sources told The Real Deal.

Chetrit acted on a “put option” in the ownership agreement, which allowed the firm to sell its stake, according to sources. JDS declined to comment, and a representative for Chetrit did not immediately respond to a request for comment.

The developers had secured a $135 million pre-development financing package from Bank of the Ozarks and Melody Finance in 2017 for what is set to be a Brooklyn’s tallest tower at 1,066 feet. At the time that debt deal closed, the developers were said to be on the hunt for a $265 million construction loan to complete the 73-story, mixed-use project.

Stern and Joseph Chetrit lined up the first piece of the assemblage in 2014, paying $43.5 million for an office building at 340-366 Flatbush Avenue Extension. The property had 174,000 square feet of development rights, and the developers tacked on an additional 300,000 the following year with the purchase of the adjacent former Dime Savings Bank for $90 million.

SHoP Architects is designing 9 Dekalb, which will span 556,000 square feet — 93,000 of which will be commercial. The old bank building, which was landmarked in 1994, will hold retail. The project will contain a mix of rentals and condominiums.

Nearby, Gary Barnett’s Extell Development is building a 68-story residential tower dubbed Brooklyn Point. The developer finalized a $530 million financing package for the project’s construction late last month.

Barnett is aiming for a sellout of $901 million, which would set a record for Brooklyn.

 

Related Articles

arrow_forward_ios
695 E Main Street in Stamford (Wikimedia)
Northeast Capital JV grabs Stamford office campus for $235M
Northeast Capital JV grabs Stamford office campus for $235M
U.S. shopping mall values have struggled in recent years before valuations tanked in the wake of the pandemic amid an e-commerce boom.
US mall values plummeted by one-third in 4 years
US mall values plummeted by one-third in 4 years
CoStar CEO Andy Florance
CoStar comes home to play
CoStar comes home to play
Big Silicon Valley firm grabs 34K sf in Soho
Big Silicon Valley firm grabs 34K sf in Soho
Big Silicon Valley firm grabs 34K sf in Soho
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Behind the Vale: Conflict dogs Zelig Weiss and his hip hotel
Stephen Ross and Charles Kushner (Getty)
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Stephen Ross, Charles Kushner, other titans paid no federal taxes for years
Last call? Cipriani facing possible foreclosure after mortgage default
Last call? Cipriani facing possible foreclosure after mortgage default
Last call? Cipriani facing possible foreclosure after mortgage default
Northpath Investments nabs Milford Plaza for $11M
Northpath Investments nabs Milford Plaza for $11M
Northpath Investments nabs Milford Plaza for $11M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...