The future of Brooklyn's tallest skyscraper, the Brooklyn Tower, faces uncertainty amid reports of its developer, Michael Stern, defaulting on $235 million mezzanine loan repayments.
According to the Financial Times, the lenders, Silverstein Capital Partners have initiated foreclosure procedures against Stern's company, JDS Development Group, which could see the Brooklyn Tower go to auction on June 10. The auction could see Silverstein, the developer of the rebuilt World Trade Center, take control of the unfinished building, which sits on the corner of Flatbush and DeKalb Avenues.
The Brooklyn Tower, New York's only skyscraper outside Manhattan, faces several challenges including complaints from some residents who have said that some of the promised amenities have not been delivered.
The building, which was due to be completed in 2022, is over budget, according to the FT. The delays have been attributed to high costs due to inflation and shortages of raw materials. It is unclear how many units are unsold. The tower has received mixed responses since 2021, with Brooklyn residents saying the building was better suited for Manhattan's Billionaire's Row despite some architectural critics applauding the building.
