https://therealdeal.com/new-york/202...-9-dekalb-ave/
By Rich Bockmann
The bigger they are,
the harder they’re hit by rising interest rates.
Developer Michael Stern has defaulted on his mezzanine loan at 9 DeKalb, Brooklyn’s tallest tower, and is now facing foreclosure.
Larry Silverstein’s Silverstein Capital Partners, which issued a $240 million mezzanine loan in 2019 to help finance
the 93-story skyscraper at 9 DeKalb Avenue, has scheduled a UCC foreclosure auction for June 10, according to marketing materials from JLL.
It’s not clear what will become of
the tower, which has become an object of strange fascination for its Gothic (some might say sinister-looking) design.
Most mezzanine foreclosures draw little interest from bidders and end with
the lender taking control, though there have been some recent examples where investors have come in and acquired
the stake.
...
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