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Silverstein Properties is moving to foreclose on JDS Development’s Brooklyn Tower, the tallest building in the city outside of Manhattan.
Silverstein, a family-run firm, provided Michael Stern’s JDS Development Group, the real estate company behind the supertall at 9 DeKalb Ave., with a $240 million loan in 2019. The project is now in default on its junior mezzanine, senior mezzanine and mortgage loans, according to Silverstein. The company has hired JLL to handle the foreclosure auction, scheduled for 10 a.m. June 10.
It is not uncommon for a lender to take control of a property through a foreclosure auction, and Silverstein’s unique position as both the lender on the property and a prominent New York landlord could position it to do just that. The firm did not respond to a request for comment about a possible takeover.
Representatives for JDS did not respond to a request for comment by press time.
Brooklyn Tower is just one of many residential buildings that has opened in Downtown Brooklyn in recent years, but its height and design have long made it stand out, for better and for worse. The 93-story project stands 1,066 feet tall, and its sleek dark exterior has sparked comparisons to the tower of Sauron, the main villain in The Lord of the Rings saga.
The project has faced legal woes as well. Stern first bought the site with former partner Joseph Chetrit in 2015 for $90 million, but he agreed to buy out Chetrit’s stake in 2018. Chetrit then sued JDS and Stern through a limited liability company in early 2022, claiming Stern still owed him $17.6 million from the deal, with interest accruing by the day. The suit was discontinued that June.
The project contains about 550 residential units, split between roughly 400 apartments, about 30% of which are affordable housing, and 150 condos. It is located alongside Downtown Brooklyn’s landmarked Dime Savings Bank.
StreetEasy lists 11 condos for sale at the project, ranging in price from $950,000 for a studio to $7.85 million for a penthouse. The site lists 12 rentals available, with prices ranging from $3,965 for a studio to $8,375 for a two-bedroom.
JDS Development is also behind the Billionaires Row tower at 111 W. 57th St., which stands about 1,400 feet tall and which it has called the “most slender skyscraper in the world.”
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Eddie Small , 2024-04-08 18:50:25
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