Silverstein Properties Secures $672M Deal for Brooklyn Tower's Rental Units, Unsold Condos & Retail

Silverstein Properties has acquired the unsold condominium units and the rental and retail portions of the Brooklyn Tower from Michael Stern's JDS Development. The transaction, valued at approximately $672 million, marks a significant shift for the troubled skyscraper.

Background and Foreclosure

Silverstein had shown interest in the property for some time, having provided a $240 million loan to Stern in 2019. The project later defaulted on several loans, leading to a scheduled foreclosure auction on June 10. However, the auction was postponed due to ongoing settlement talks between Silverstein and JDS.

Statements and Responses

Both Silverstein and JDS released statements on June 10, confirming the auction's postponement. Silverstein's representative declined to comment further, and JDS did not immediately respond to requests for comments. The deal was first reported by PincusCo.

The Tower's Features

Brooklyn Tower, located at 9 DeKalb Ave., stands 93 stories and 1,066 feet tall, making it the tallest building outside Manhattan. Known for its striking dark exterior, the tower has about 550 residential units, including 150 condos and 400 apartments, with 30% designated as affordable housing. StreetEasy lists rental prices ranging from $3,975 to $7,950, and condo prices from $950,000 to $7.9 million.

Ownership History and Legal Disputes

Michael Stern acquired the site in 2015 for $90 million with developer Joseph Chetrit. Stern later bought out Chetrit's stake in 2018, leading to a legal dispute. Chetrit sued Stern and JDS in 2022, claiming he was still owed millions from the deal, though the lawsuit was discontinued later that year.