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By: Serach Nissim
JDS Development Group built the tallest building in New York City outside of Manhattan. Known as the Brooklyn Tower, at 9 DeKalb Avenue in Downtown Brooklyn, it boasts 93-stories, soaring 1,066 feet into the sky. The mixed-use skyscraper is primarily residential. To make this dream a reality, Michael Stern’s JDS Development Group had taken out a $240 million loan in 2019 from Silverstein Properties. As reported by Crain’s NY, it is now in default on its junior mezzanine, senior mezzanine and mortgage loans, Silverstein said. Silverstein has hired JLL to handle the foreclosure auction, currently scheduled for June 10 at 10 a.m.
It would not be unusual for a lender to take control of a property through a foreclosure auction, and Silverstein is certainly positioned to do so— both as the lender on the property and as a seasoned NY landlord. The companies did not reply to Crain’s request for comment regarding a possible takeover.
The sleek dark skyscraper, clad in stone, bronze, and stainless steel, is hardy the only big residential tower to recently open in Brooklyn—but it is the tallest. The building boasts roughly 550 residential units—150 of which are condos, as well as about 400 apartments, 30% of which are affordable housing. Designed by SHoP Architects it is situated alongside Brooklyn’s landmarked Dime Savings Bank.
The building contains some 120,000 square feet of amenity spaces, some of which are within the bank. Amenities include three rooftop swimming pools, a cocktail bar and lounge by the pools, an indoor fitness center with a fourth pool, conference and meeting rooms, dining room with kitchen, billiards room, and a movie room for residents. StreetEasy lists 11 condos available for sale at the building, with prices ranging from $950,000 for a studio to $7.85 million for a penthouse. The site also lists 12 rentals available, with a studio asking $3,965 a month, and a two-bedroom asking $8,375 monthly.
Per Crain’s, Stern had first purchased the project site for $90 million in 2015 with former partner Joseph Chetrit. Later, in 2018, he had agreed to buy out Chetrit’s stake in the project and pay for part of it with a $20 million promissory note, according to the lawsuit. In early 2022, however, Chetrit had sued JDS and Stern through a limited liability company, claiming that Stern still owed him $17.6 million from the deal, with $8,000 in interest accruing daily. The suit was discontinued that June when the real estate titans came to a settlement.
JDS Development is also the developer behind the Billionaires Row tower near Central Park at 111 W. 57th St. That building has been dubbed the “most slender skyscraper in the world.” Also named the Steinway Tower, the luxury condo building stands about 1,400 feet tall and has 84-stories, containing 60 condos.
The tower, completed in 2022, is the fourth-tallest building in the U.S., as of November 2022, and is the thinnest skyscraper in the world with a width-to-height ratio of roughly 1:24. Amenities at that tower include an indoor pool, sauna, steam, and treatment rooms, a fitness center, a golf simulator, paddle court, outdoor terrace, a study, and a private dining room with catering kitchen. JDS had faced its share of problems at that property as well, including an accident in 2021 which had led construction to stall for months. The developer had sued crane operators over the incident.
