Brooklyn’s tallest tower may soon rise thanks to massive Silverstein loan

Silverstein Capital to lend $240M on JDS’ 9 DeKalb

New York /
Nov.November 15, 2018 04:49 PM

Michael Stern and a rendering of 9 DeKalb Avenue (Credit: JDS Development)

Michael Stern’s JDS Development is in advanced talks to secure a $240 million mezzanine loan from Silverstein Capital Partners for its planned Brooklyn mixed-use tower 9 DeKalb Avenue, sources told The Real Deal.

The loan is part of a $650 million financing package that will likely also include a $400 million senior mortgage from another lender, sources said. It will also mark the first major loan issued by Silverstein Capital, developer Silverstein Companies’ new commercial debt business.

Stern plans to build a 1,066-foot-tall mixed-use tower that will include more than 400 rental apartments. Once completed, it will be Brooklyn’s tallest building.

Stern and Joseph Chetrit bought part of the assemblage for $43.5 million in 2014 and added the Dime Savings Bank building for $90 million in 2015. Last year, the developers landed a $135 million land loan package from Bank of the Ozarks and Melody Finance.

Earlier this year, Stern bought Chetrit out of the partnership for $60 million.

Silverstein launched its lending arm last month and hired Cantor Commercial Real Estate veteran Michael May to head it.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Acore Partner Warren de Haan. (Acore, Getty)
Acore Capital raises $1B to provide rescue cash to hotels
Acore Capital raises $1B to provide rescue cash to hotels
 61 Bond Street in Brooklyn, iStar's Jay Sugarman and GFI's Allen Gross (Photos via Google Maps, iStar and Urban Land Institute)
GFI sells ground under Ace Hotel in Brooklyn for $45M
GFI sells ground under Ace Hotel in Brooklyn for $45M
AKA United Nations at 234 East 46th Street (Google Maps, iStock)
Bank forecloses on Prodigy’s AKA United Nations hotel building
Bank forecloses on Prodigy’s AKA United Nations hotel building
From left: 410 Tenth Avenue, 100 Park Avenue, a rendering of 230 East 20th Street, a rendering of 30 Morningside Drive, SL Green's Marc Holliday (Photos via Google Maps, Getty, Gramercy Square, 30 Morningside Drive/Illustration by Kevin Rebong for TRD) 
These were the largest Manhattan real estate loans in January
These were the largest Manhattan real estate loans in January
Ron Perelman with 27-33, 35 and 41 East 62nd Street (Getty; Google Maps)
Citi looks to sell $193M in defaulted loans on Ron Perelman’s buildings
Citi looks to sell $193M in defaulted loans on Ron Perelman’s buildings
Bank of America puts $10B toward affordable homeownership
Bank of America puts $10B toward affordable homeownership
Bank of America puts $10B toward affordable homeownership
arrow_forward_ios

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

Loading...