Michael Stern’s authorized battle with Larry Silverstein over Brooklyn’s tallest tower isn’t over.
Stern missed a court-ordered deadline at hand over a $2 million deposit to Silverstein’s Silverstein Capital Companions in an arbitration dispute tied to the supertall tower at 9 DeKalb Avenue, based on a petition filed Monday in state Supreme Court docket.
The submitting stems from a 2024 settlement tied to Silverstein’s takeover of the supertall residential tower in Downtown Brooklyn that required Stern to reimburse the lender for sure prices. If he disputed the quantity owed, he was required to submit a written rationalization together with a $2 million deposit to be held in escrow whereas the dispute was resolved by arbitration, based on the submitting.
Stern allegedly challenged Silverstein’s $11.8 million reimbursement demand however by no means posted the deposit. After a listening to, an arbitrator ordered Stern to pay the $2 million by June 25. Stern missed the deadline, main Silverstein to petition the court docket to substantiate the arbitration award and order him to pay it.
Stern and Silverstein declined to remark.
The submitting is the most recent chapter in a yearslong drama over the financing and eventual takeover of the tower. Stern started assembling the positioning in 2014, when he bought rather a lot with Joseph Chetrit’s Chetrit Group. The next 12 months, the pair purchased the neighboring Dime Financial savings Financial institution for $90 million. JDS took full management of the mission in 2018 when it bought out Chetrit for $60 million.
The developer locked down a $240 million mezzanine mortgage from Silverstein in 2019 as a part of a $664 million debt package deal, together with $424 million from Otera Capital. Silverstein later purchased the senior mortgage from the Canadian lender.
JDS turned the tower over to Silverstein after defaulting on the mezzanine mortgage.
The lender filed to foreclose on the property, however the scheduled public sale was referred to as off after the 2 agreed to settle. A settlement settlement was alleged to resolve all excellent disputes associated to the property and loans.
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