Silverstein Properties has a new president for its growing lending platform, which is in the midst of a saga involving one of Brooklyn’s most prominent developments.
Shawn Katz is taking over as president of Silverstein Capital Partners, the $5 billion lending platform, Silverstein announced on Wednesday. Katz is replacing Michael May, who the company said is stepping down to “pursue other interests.”
Katz has been with Silverstein Capital Partners since its inception in 2018, previously serving as its senior managing director. Katz has also held significant roles at KUB Capital, which he co-founded, and Rosemont Realty.
In a statement, Katz noted the market is “facing a notable supply-demand gap in real estate financing.”
Silverstein Capital launched six years ago with backing from deep-pocketed sovereign wealth and pension funds.
Stepping in as an alternative lender after bank regulation was increased post-financial crisis, the platform targeted construction lending — senior loans, bridge loans, subordinate loans and rescue capital — before expanding to other areas, such as inventory loans on completed condominium projects.
The platform focuses on residential, office, industrial and retail properties.
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Among its most prominent loans are a $340 million for the Legacy Hotel & Residences in Miami — one of the largest construction loans ever issued in Florida — and a $236 million mezzanine loan in 2018 to JDS Development’s mixed-use tower at 9 Dekalb Avenue in Brooklyn.
In December, Silverstein Capital bought the senior debt on Brooklyn Tower, taking over nearly $430 million in senior debt for Michael Stern’s 1,066-foot tower. Stern defaulted on the mezzanine loan in March, leading Silverstein to commence a UCC foreclosure.
An auction was scheduled to take place on Monday morning. Shortly after it was slated to begin, however, it was called off as both sides of the dispute declared settlement talks were underway.