Silverstein takes control over Brooklyn Tower in $672M deal
Photo by Evan Joseph
The real estate drama surrounding the Brooklyn Tower may be over. As first reported by Pincus Co, Silverstein Properties has taken over the tower’s rental, retail, and unsold condo units from JDS Development in a $672 million deal. Silverstein had provided a $240 million loan for the tower, which JDS defaulted on in 2019, leading to a foreclosure auction scheduled for June 1. The auction was delayed and eventually avoided after Michael Stern of JDS transferred a preferred equity piece in the tower to Silverstein in order to restructure his debt, according to The Real Deal.
Located at 9 Dekalb Avenue in Downtown Brooklyn, the 93-story tower is the borough’s first “supertall” skyscraper and the tallest building outside Manhattan, at 1,066 feet. Designed by SHoP Architects, the building incorporates the historic Dime Savings Bank of Brooklyn, situated at its base, into its design, and contains a total of 143 condos and 400 rentals.
Stern bought the site in 2015 for $90 million with developer Joseph Chetrit and agreed to buy Chetrit’s stake in 2018, according to Crain’s. Chetrit sued JDS in 2022, claiming he was still owed millions from the deal. The suit was discarded less than a year later.
In March 2023, JDS enlisted Newmark to assist in listing the rental and retail space within the building for sale. JDS announced that it would retain ownership of the 143 condos. The listing estimated the property’s value at over $600 million, or at least $1.5 million per unit, according to Globest. However, JDS never reached a deal.
In April 2024, JDS defaulted on a $240 million mezzanine loan issued by Silverstein Capital Partners in 2019 for the tower. The building’s junior mezzanine, senior mezzanine, and mortgage loans were all in maturity default, and Silverstein enforced its rights through a UCC foreclosure, as reported by The Real Deal.
JDS defaulted on its loan just a week after the tower set a record for the most expensive studio in Brooklyn. The studio residence 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.
Brooklyn Tower topped out in 2021 and launched sales in 2022. The building’s amenities package, which features the highest basketball court in the Western Hemisphere, a dog run, a playground, and a stunning outdoor pool around the historic bank’s Guastavino dome, is not yet complete.
Current availability starts at $950,000.
RELATED:
