Developer Of Brooklyn’s Tallest Skyscraper Defaults, Faces Foreclosure

A view of the New York City skyline from the Hudson River in New York, Wednesday, Sept. 14, 2022. (AP Photo/Seth Wenig)

Brooklyn’s tallest building is struggling to pay its skyscraping loans.

Michael Stern, the developer of 9 DeKalb Avenue’s 93-story The Brooklyn Tower, has defaulted on a $240 million mezzanine loan and now faces foreclosure, the Real Deal has reported.

A UCC foreclosure auction has been scheduled for Jun. 10 by Silverstein Capital Partners, which issued the loan in 2019, according to marketing materials from real estate company JLL.

“9 DeKalb’s junior mezzanine, senior mezzanine and mortgage loans are in maturity default, and the junior mezzanine lender is enforcing its junior mezzanine loan remedies through a Uniform Commercial Code (UCC) sale process,” a Silverstein spokesperson confirmed to The Post.

“The junior mezzanine lender has engaged JLL to market the equity interests securing the junior mezzanine loan, and they will conduct a public auction after a marketing period.”

Click here to read the full story in the New York Post.