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Silverstein Properties and JDS Development have avoided a high-stakes foreclosure auction for control of 9 Dekalb, the 93-story skyscraper in Downtown Brooklyn known as the Brooklyn Tower.
Silverstein signed a $672M deal to take over the retail, rental and unsold condo units at the 1,066-foot tower, according to property records. The deal gives Silverstein full ownership of the tower, PincusCo first reported.
Silverstein Capital Partners, the developer’s lending arm and the mezzanine lender on the building, had scheduled a foreclosure auction on the property for June 10.
But that auction was called off at the last minute, with Silverstein and JDS negotiating a settlement instead, Crain’s New York Business previously reported, resulting in the deal unearthed in property records Tuesday.
A Silverstein Properties spokesperson declined to comment on the deal. JDS Development didn't respond to Bisnow’s request for comment.
Silverstein provided a $240M mezzanine loan for construction of the tower in 2019 as part of a $664M debt package. Earlier this year, Silverstein also bought the Brooklyn Tower’s senior $424M mortgage from lender Otéra Capital.
But by March, JDS had defaulted on the junior, senior and mezzanine debt, a Silverstein spokesperson told Bisnow at the time.
The tower has drawn comparisons to the Eye of Sauron from the Lord of the Rings for the way its dark, glassy exterior and soaring height looms over Brooklyn. It has roughly 500 apartment units, 30% of which are designated as affordable, and 143 condo units.
Two commercial units, four retail units, the rental apartments and 125 unsold condominium units were transferred to Silverstein, according to property records.
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