The Real Deal New York

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

Silverstein Capital to lend $240M on JDS’ 9 DeKalb
By Konrad Putzier, David Jeans and Rich Bockmann | November 15, 2018 04:49PM

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.