Mezzanine lender
Silverstein Capital Partners took control of the mostly vacant 143-unit condominium tower at
9 Dekalb Avenue on June 10 in a $672 million deal, according to
property records made public Monday and a source with knowledge of the deal. The sale closed just ahead of a Uniform Commercial Code (UCC) foreclosure auction scheduled for last month.
The deal comes after JDS defaulted in March on the property’s $240 million mezzanine loan once it failed to find buyers for the recently completed luxury units,
The Real Deal reported. Silverstein issued the loan in 2019, bringing JDS’s debt on the project to about $664 million.
Silverstein bought the tower’s senior debt earlier this year about a month before initiating foreclosure proceedings,
according to TRD.
It’s been
exactly a decade since JDS revealed the designs
drawn up by SHoP Architects to build Brooklyn’s first residential supertall.
The troubled tower is famous not only for its malevolent aura — resembling a villain’s lair from “The Lord of the Rings” — but also for the high price tag JDS hoped to fetch from affluent home hunters looking for a place in Downtown Brooklyn.
Listing prices for units range from $950,000 for studios to $7.9 million for a penthouse, and
residential developer Stern fell into trouble when sales didn’t go as planned.
A spokesperson for JDS did not immediately respond to a request for comment. Silverstein declined to comment.
JLL (JLL)’s
Brett Rosenberg
handled the UCC Foreclosure auction and did not immediately respond to a request for comment.
