Commercial
New York
What’s next for Michael Stern’s troubled 9 DeKalb?
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Stern gives up Brooklyn Tower to Silverstein
JDS and lender Silverstein negotiated settlement to avoid foreclosure
From left: Larry Silverstein, Michael Stern and 9 DeKalb Avenue (Getty, Google Maps)
Michael Stern transferred his distressed Brooklyn Tower to lender Larry Silverstein.
Stern’s JDS Development transferred 100 percent ownership in the supertall tower at 9 DeKalb Avenue to Silverstein Capital Partners in a transfer valued at $672 million, property records filed with the city Tuesday show.
Representatives for Stern and Silverstein declined to comment.
The deal closes this chapter on the 1,067-foot tower, which captured onlookers’ attention with its ominous-looking Gothic design and its foreboding financial situation.
Stern began developing the project in 2014, building 130,000 square feet of retail space, 417 rental units and 143 residential condominiums.
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Residential
New York
Michael Stern defaults on Brooklyn’s tallest tower
Commercial
New York
Brooklyn Tower foreclosure bumped for Silverstein settlement
But JDS fell behind on the debt and earlier this year Silverstein Capital filed to foreclose on the property. Silverstein had provided a $240 million mezzanine loan in 2019, and later acquired the property’s $424 million senior mortgage from Otera Capital — giving it full control of the debt stack.
A UCC foreclosure auction had been scheduled for June 10 but was called off at the last minute as the two sides announced they were working on a settlement.
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