Brooklyn's Tallest Tower To Rise After Landing $664M Loan
Brooklyn’s tallest tower will now move ahead thanks to a big loan from Silverstein Capital Partners, the new debt vehicle for Larry Silverstein's firm, and Otéra Capital Inc.
JDS Development scored $664.1M from the lenders for the planned 1,066-foot-tall apartment tower known as 9 Dekalb Ave., The Wall Street Journal reports. The loan closed Tuesday. Development will start this summer and is slated to be complete by 2022.
The project would eventually feature 425 rental units, 30% of which will be set aside as affordable housing, as well as 150 condominiums and 120K SF of retail space. It is built over the landmarked Dime Savings Bank and has faced years of challenges to find financing.
“The thing that attracted us to it is the same thing that scares others,” Silverstein Capital Partners President Michael May told the WSJ.
It is the first loan from Silverstein, which set up its lending arm last year.
“Rates have gone up. Taxes are getting worse … I’m seeing more inventory loans than I ever have. Construction costs haven’t moved,” May said at Bisnow’s New York City State of the Market event last year. “[You've] got a ton of headwinds, but this is still an incredible market.”
JDS bought the site for the development back in 2014 with the Chetrit Group. Right now the tallest building in the area is Extell Development Group’s Brooklyn Point, which is 720 feet tall and has topped out. That group landed a $530M loan last year.