JDS Lands $664M Loan to Build Brooklyn’s Tallest Tower
- May 02, 2019
JDS Development Group has scored $664.1 million in financing to finish construction of what will be the tallest skyscraper in New York City’s outer boroughs. The supertall structure, dubbed 9 Dekalb Ave., is poised to deliver 575 luxury and affordable residences in downtown Brooklyn.
Otéra Capital Inc. and Silverstein Capital Partners provided the construction loan, according to a statement by JLL’s Capital Markets team, which secured the financing. Upon completion in 2022, the glass-and-steel tower will rise 1,066 feet high, offering 425 rental apartments and 150 condos, as well as 120,000 square feet of retail space. Thirty percent of the rental units will be capped below market rates.
The 73-story tower designed by ShOP Architects is located at 340 Flatbush Ave. Extension, behind the historic Dime Savings Bank of Brooklyn, which will be repurposed as part of the base of the skyscraper. The former bank’s palatial interior will be turned into a flagship store, and the roof will give rise to an outdoor lounge with a pool for residents.
JDS moves forward on landmark project
JDS bought the site in partnership with Joseph Chetrit in 2014, and the duo purchased the adjacent bank the following year. In 2017, the project began foundation work and the developers received a $135 million bridge and pre-development loan, according to a report by The Real Deal. Stern bought out Chetrit’s stake in the complex project for $60 million in 2018.
The JLL team that secured the latest financing was led by Vice Chairmen Aaron Appel, Keith Kurland and Jonathan Schwartz and Managing Directors Michael Diaz and Mark Fisher, along with Associates Matthew Collins and Sean Bastian.
“This project checked all the boxes: a premier sponsor with deep development experience, a marquee building that will define the Brooklyn skyline and lenders that recognized this as an outstanding opportunity,” said Appel in prepared remarks.
Founded by Michael Stern, JDS has more than 9 million square feet of properties in various stages of development. The company is also building the 60-unit skinny supertall residential tower 111 W. 57th St. near Central Park, in concert with Property Partners, as well as the American Copper Buildings at 626 First Ave. on the East River, which will provide 601 market-rate units and 160 affordable units. Both properties are also designed by ShOP Architects.