Stern gives up Brooklyn Tower to Silverstein

JDS and lender Silverstein negotiated settlement to avoid foreclosure

Michael Stern Gives 9 DeKalb Stake in Debt Restructuring

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.

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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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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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