Do you want a sign of the crisis in the USA? Brooklyn’s tallest building goes into foreclosure
US real estate prices are apparently holding up. That's all well and good, but it's just the surface. In reality, the number of defaults, and therefore foreclosures, is growing, as shown by official data from the Saint Louis Fed :
Alongside these disturbing data there is also apparently anecddic news, but, in reality, very explanatory of the reality of the facts. The infamous Brooklyn Tower, the 1066-foot, 324-meter building, called the Eye of Sauron for its friendly appearance, the tallest in all of Brooklyn, is at risk of seizure and sale. According to JLL marketing materials, Silverste in Capital Partners has scheduled a foreclosure auction for 9 DeKalb Ave, JDS Development's Brooklyn Tower.
JDS took out a $240 million interim loan with Larry Silverstein's company in 2019, as part of a $664 million debt package to build the 93-story, 1,066-foot tower in downtown Brooklyn. While the property is incredibly celebrated, JDS is now in default on the loan, according to the foreclosure notice, first reported by ten31 on X, which sparked the foreclosure auction, scheduled for June 10.
To lock in the entire capital structure, Silverstein also purchased the property's senior debt, a $424 million mortgage originally provided by Otéra Capital, earlier this year. A spokesperson for Silverstein told Bisnow in an email that 9 DeKalb's junior, senior and mezzanine loans are all in default and that Silverstein is asserting its rights as a lender, meaning the Eye of Sauron is to have a new master.
The mid-grade loan was the first debt originated by Silverstein Capital Partners, launched in 2018. It has since raised more than $4 billion and provided debt to projects such as Hudson Cos' One Clinton condominium. and commercial development in Brooklyn Heights.
Construction on the tower, which sits atop the historic Dime Savings Bank and Junior's restaurant, began in 2015. The property, which is Brooklyn's first supertall just over 1,000 feet tall, also contains a 130,000 square foot retail portion, largely occupied by Life Time Fitness. Unit 72A this week set the record for the most expensive studio apartment in Brooklyn when it sold for $905,000, 6sqft reported.
If even a property of this size and prestige falls victim to foreclosures in New York, we should start asking ourselves what the real quality of American real estate credit is, and not only that linked to commercial properties, but also that of prestigious buildings. of metropolises.
Thanks to our Telegram channel you can stay updated on the publication of new Economic Scenarios articles.
The article Do you want a sign of the crisis in the USA? Brooklyn's tallest building goes into foreclosure comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/volete-un-segno-della-crisi-negli-usa-il-piu-alto-edificio-di-brooklyn-viene-pignorato/ on Sat, 30 Mar 2024 07:00:34 +0000.