Brooklyn Tower faces foreclosure
Photo courtesy of Evan Joseph
Despite setting a record for Brooklyn’s most expensive studio last week, the Brooklyn Tower is facing foreclosure. JDS Development has defaulted on a $240 million mezzanine loan issued by Silverstein Capital Partners in 2019 for the 93-story development, as reported by The Real Deal. Silverstein has scheduled a foreclosure auction for June 10.
According to a Silverstein spokesperson, the building’s junior mezzanine, senior mezzanine, and mortgage loans are all in maturity default, and the real estate lending firm is enforcing its rights through a UCC foreclosure, as reported by The Real Deal.
Located at 9 Dekalb Avenue in Downtown Brooklyn, the tower is the borough’s first “supertall” skyscraper, standing over 1,000 feet tall. Designed by SHoP Architects, the building incorporates the historic Dime Savings Bank of Brooklyn, situated at its base, into its design, and includes a total of 143 condos and 400 rental apartments.
In March 2023, JDS Development brought on Newmark to help list the rental and retail space within the building for sale. JDS said that it would maintain ownership of the 143 condos. The listing priced the property at an estimated value of more than $600 million, or at least $1.5 million per unit, according to Globest. However, JDS never reached a deal.
Last week, the building broke a real estate record when a studio apartment within the tower sold for $905,000, the most expensive studio sale on a price-per-square-foot basis in the borough. According to city records, the apartment sold for a little over $2,000 per square foot.
After topping out in 2021, the Brooklyn Tower launched sales in 2022; current availability starts at $950,000. The amenity package, which includes the Western Hemisphere’s highest basketball court, dog run, and playground, and an outdoor pool around the historic bank’s Guastavino dome, is not complete yet.
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