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Walking away from a stake in this tower can’t be a good sign for the city’s market. This is the premiere tower in Brooklyn.
Quote:
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.
If he defaulted by a decision of his own despite having the money for the payment, then the banks should be very hard on him.
If, however, he didn’t wanted to default but simply the money isn’t there, not that banks should shrug their shoulders and let it go, but it isn’t quite the same.
The first type would be quick to file for bankruptcy and do what he/she can to not comply with his/her obligations. The second one will pay back the loan with interest when the money appears or if the banks want to negotiate the payments amount, not the total owed.
One is of an irresponsible doesn’t care about anything while the other is responsible but have fallen on hard times for X or Y reason.
Defaulting isn’t a blanket that falls equally on all, it also matters how the default came to be.
Is this that tall building that I can see in the far distance even from Hylan Blvd here on S.I.? The article doesn't state if the problem was unsold units, etc. Whatever the reason it's not a good sign as you state.
Is this that tall building that I can see in the far distance even from Hylan Blvd here on S.I.? The article doesn't state if the problem was unsold units, etc. Whatever the reason it's not a good sign as you state.
I don’t know who the guy is but if anyone is walking away from an investment in what is supposed to be Brooklyn’s premier mixed use building, it’s not a good sign.
Canary in the coal mine.
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