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Michael Stern was fed up.
For weeks, an anonymous website had been portraying the existent property developer arsenic a fraud who has a past of deceiving investors and concern partners.
Does he? Stern says no. In April, helium filed a suit seeking to wide his name, demanding that a justice unmask the anonymous website creator.
What Stern does have, according to a Business Insider review, is simply a past of lawsuits filed against him by erstwhile concern partners, investors, contractors, and adjacent his mother.
Stern is simply a large people — 1 of the uncommon fewer who tin credibly assertion to person remade New York City's skyline. He built the "world's skinniest skyscraper" successful Manhattan and the tallest operation successful Brooklyn.
These days he's trying to permission his people connected Miami, wherever he's processing $4 cardinal successful luxury projects with Italian packaging heir Gianluca Vacchi. Their portfolio includes a $1 cardinal Mercedes-Benz residential tower, implicit with a fleet of cars for residents, and 1 of Dolce & Gabbana's archetypal ventures into branded existent estate.
Stern's accomplishment successful Miami turned heads. The Financial Times precocious named him 1 of the apical "10 powerfulness builders and brokers shaping Miami." In February, hundreds of existent property brokers showed up for his lavish enactment promoting the Mercedes-Benz tower, a testament to his increasing clout successful the luxury market.
But ineligible issues person followed him to the Magic City. Stern says it's conscionable portion of the job.
"Unfortunately, litigation is portion of the concern if you bash capable deals and you're astir agelong enough," Stern told BI successful December. "We unrecorded successful a litigious society, and anybody tin marque claims successful the tribunal system."
Despite the ineligible battles that forced him to surrender power of immoderate signature projects, Stern remains focused connected his legacy. "We privation to animate people," helium said. He likes to deliberation of children gazing up astatine his towers and wondering: "How did they bash that?"
Stern was calved successful June 1979 to a caregiver and an car assemblage store owner. Raised successful an Orthodox Jewish assemblage connected Long Island, helium was kicked retired of aggregate yeshiva precocious schools "that didn't similar my leather jacket, didn't similar my attitude," helium told The Real Deal successful 2016.
After graduation, helium moved to Florida, wherever helium worked arsenic a task manager for a existent property developer. In 2000, erstwhile helium was 21, Stern returned to New York, got married, and moved into his wife's location connected Long Island. Two years later, helium founded JDS and started gathering low- and mid-rise houses successful the outer boroughs. "I liked that I could bargain a ungraded batch and physique thing great, and idiosyncratic would marque that their home," helium told BI.
Over the adjacent respective years, Stern became progressive successful a bid of ineligible disputes with his family. After helium got married, Stern added his parent and his member to the deed of his wife's Long Island location and took retired astatine slightest 2 caller mortgages, 2 of which were aboriginal foreclosed upon.
Stern's woman filed for divorcement successful 2009. Two years later, Stern's parent sued Stern, his wife, and his brother. In tribunal filings, Stern's woman said Stern took retired a $1 cardinal owe successful her sanction by forging her signature connected indebtedness documents. Stern argued helium had powerfulness of lawyer to motion connected his wife's behalfand said helium hadn't made immoderate payments connected the owe since 2007, resulting successful 1 of the foreclosures. (In a 2025 affidavit provided to BI by Stern's lawyer, Stern's ex-wife present says that helium ne'er forged her signature.) In 2011, each parties agreed to discontinue the lawsuit concerning the house. The adjacent year, Stern's divorcement was finalized, and his ex-wife regained sole ownership of her home.
I liked that I could bargain a ungraded batch and physique thing great, and idiosyncratic would marque that their homeMichael SternAmid the idiosyncratic turmoil, Stern's vocation was taking off. In 2009, helium partnered with the developer Property Markets Group to bargain a 24-story creation deco gathering successful Chelsea for $25 million. It was a large leap for Stern, and helium and PMG spent respective years transforming the Ralph Thomas Walker-designed gathering into a 47-unit luxury development. John Cetra, the conversion architect, said Stern didn't hesitate to walk large connected high-quality features, adding radiant level heating and a built-in humidification system.
Vickey Barron, a Compass broker who handled income for what became known arsenic Walker Tower, said Stern was on-site astir each time during operation — antithetic for a developer. When Hurricane Sandy deed successful 2012, Stern slept successful the gathering to show immoderate harm due to the fact that the windows weren't afloat installed, she said.
Stern's absorption paid off. Cameron Diaz, Harrison Ford, and different A-listers bought apartments there, prompting the New York Daily News to nickname Walker Tower the "Fame Fortress." Stern moved successful himself. According to the publication "Billionaires' Row," full profits from Walker Tower exceeded $400 million."
At the aforesaid time, tensions appeared to beryllium increasing betwixt Stern and his partners. Kevin Maloney, PMG's CEO, and Elliott Joseph, a erstwhile PMG executive, accused Stern successful The Wall Street Journal of taking recognition for their enactment connected Walker Tower adjacent though they codeveloped the task and agreed to divided profits 50-50. In 2013, Stern told the paper: "I conceived it, designed it, built it, and was bulk spouse connected it. That's conscionable reality." He added, "It was my baby, a 100 percent. Not a 100 percent, a cardinal percent."
PMG continued to enactment with Stern. After Walker Tower, they restored Stella Tower successful Hell's Kitchen — wherever 60% of apartments sold a period aft hitting the marketplace — and built the American Copper Buildings connected Manhattan's eastbound broadside and condos successful Manhattan and Brooklyn.
It was an breathtaking clip to enactment for Stern, said Greg Gleicher, who started astatine JDS retired of assemblage successful 2013 and stayed for 8 years. "The projects we did were each precise high-profile and architecturally significant," Gleicher said. "As idiosyncratic who grew up successful New York City, to physique skyscrapers that you spot each clip you alert successful is beauteous unique."
Stern and PMG took connected their astir extravagant occupation to day with 111 West 57th Street, built supra a erstwhile Steinway & Sons soft store. Topping retired astatine 1,438 feet, Steinway Tower's ultrathin plan was praised arsenic a feat of engineering, and its residences started astatine $18 million. Stern said helium thought agelong and hard astir the building's bequest arsenic a "centerpin" of Central Park. "Sixty residents volition get to bask the gathering from the inside," helium said, "but the full metropolis has to unrecorded with it."
With operation underway, problems began to arise. AmBase Corporation, which had invested astir $70 cardinal successful Steinway Tower, filed a suit successful 2016 accusing Stern and PMG of a strategy to cheat AmBase retired of its $70 cardinal equity concern successful the project. As enactment fell down schedule, Stern and PMG failed to marque their payments to 1 of their lenders, Apollo Global Management. In 2017, Apollo sold a information of its indebtedness to Spruce Capital Partners, which foreclosed connected the building, wiping retired Stern and the PMG CEO Maloney's ownership involvement successful Steinway Tower, arsenic good arsenic AmBase's, Maloney said successful litigation.
By then, according to AmBase's lawsuit, the operation was $50 cardinal implicit fund and conscionable a 4th built. "The world's skinniest skyscraper mightiness ne'er get finished," work a 2017 New York Post headline.
Still, the developers were kept connected to decorativeness construction. The pursuing year, a backstage equity steadfast agreed to put $90 cardinal successful the operation successful a woody that returned Stern's and Maloney's ownership stakes, The Real Deal reported. (BI was incapable to corroborate what percent of the task Stern owns.) A spokesperson for Stern called AmBase's suit "meritless" and pointed retired that galore of its claims had been dismissed.
Meanwhile, income of the ultraluxury units lagged. Stern fired the archetypal Corcoran income squad successful 2018 and replaced it with a rival, Douglas Elliman. Corcoran blamed the developers successful a $30 cardinal lawsuit, accusing them of undermining its efforts done infighting and antagonistic press. (Stern's spokesperson said the suit was settled amicably and JDS continued to enactment with Corcoran.) Apollo wrote disconnected portion of its indebtedness successful 2023, with the CEO telling analysts that "the velocity of portion income remains down expectations."
Sixty residents volition get to bask the gathering from the inside, but the full metropolis has to unrecorded with it.Michael Stern connected Steinway TowerThrough it all, Stern's narration with Maloney grew much combative. In a 2015 email aboriginal cited successful ineligible filings from the AmBase lawsuit, Stern called his spouse "clueless and uninformed" and said his institution was filled with "criminals and morons and secretaries." He wrote: "You are an ingrate arsenic I person made you tons and tons of money. Easy to propulsion potshots from Florida. Fuck you."
Maloney said successful 2014 that helium wouldn't enactment with Stern again. "We're precise antithetic personalities," helium told The Real Deal, adding that helium hadn't done his owed diligence connected Stern earlier partnering with him. Maloney aboriginal said helium considered Steinway Tower to beryllium a commercialized failure. "I mislaid each my money, but truthful did everybody else," helium said successful a July 2024 deposition.
Stern told BI that helium and Maloney had pugnacious moments moving unneurotic but were connected bully terms. "We're some surviving successful Miami now, and our kids spell to the aforesaid schoolhouse truthful I spot him astatine drop-off," helium said. Maloney declined to comment.
Stern said that Steinway Tower taught him to instrumentality with bigger superior partners who could much easy "roll with the punches." The lawsuits and atrocious press, helium said, were the outgo of doing business. "We weren't going to beryllium deterred from doing the gathering the mode we thought it should beryllium done," helium told BI. "It'll beryllium determination for generations. And successful a mates of years, cipher truly remembers the noise."
Steinway Tower wasn't the lone 1 of Stern's projects making noise. In 2016, helium and his improvement partner, Joseph Chetrit, submitted plans to the metropolis to physique the tallest skyscraper successful Brooklyn.
The Brooklyn Tower would basal astir doubly arsenic precocious arsenic thing astir it, topped by a Gothic-looking crown. It would clasp 120,000 quadrate feet of amenities, including a cocktail barroom and the Western Hemisphere's highest hoops court. The gathering seemed poised to usher successful a caller epoch of Brooklyn existent estate, implicit with Manhattan prices: condos started astatine $875,000 for a workplace and roseate to $8 cardinal for a four-bedroom. "We're truly excited to springiness Brooklyn a gathering that isn't bashful, that isn't shy," Stern told The New York Times successful 2016.
JDS launched income successful the outpouring of 2022, but deals person been sluggish. So far, 19 of the building's astir 150 condos person sold, according to information from Marketproof. (BI wasn't capable to corroborate however galore of the 400 apartments are rented.) The archetypal residents moved successful in 2023, but galore of the building's amenities — its rooftop swimming pool, its luxury gym — are inactive nether construction.
Chetrit sued Stern successful 2022, alleging that Stern inactive owed him $17.6 cardinal for buying retired his involvement successful the building. Stern disputed the magnitude but yet paid Chetrit a $15 cardinal settlement. (Stern's spokesperson said Stern and Chetrit had a "great relationship" and spoke regularly.) Then, successful the outpouring of 2024, Stern defaulted connected a $240 cardinal operation indebtedness from Silverstein Capital Partners, and Silverstein Properties took implicit the gathering successful a $672 cardinal foreclosure settlement. Stern called the nonaccomplishment "an unfortunate unfortunate of precocious involvement rates and timing." Silverstein said income were expected to relaunch in April, but they had not yet relaunched astatine the clip of publication.
In 2017, astatine astir the aforesaid clip Stern was getting The Brooklyn Tower disconnected the ground, helium finished a 43-unit condo successful Park Slope called Baltic. Tona Construction, the project's archetypal builder, accused Stern successful a $65.8 cardinal suit of failing to supply basal fiscal reports and illegally cutting Tona retired of the task to usage his ain operation firm. At the time, Stern told the property that the allegations were "baseless."
Tona besides said Stern forged the signature of the firm's president, Domenick Tonacchio, connected a indebtedness document. (A forensic adept testified that the grounds powerfully indicated the signature had not been written by Tonacchio.) Tonacchio declined to remark to BI, citing an NDA. The lawsuit was settled retired of tribunal successful 2022 connected confidential terms.
In 2020, Stern sued 2 of his collaborators — Nicholas Werner and Nissim Ben-Nun of Largo Investments — accusing them of misrepresenting their improvement expertise erstwhile they pitched moving together. (Largo denied the allegations, and a justice ruled successful their favour successful 2023.) Largo countersued, alleging that Stern had defrauded investors and inflated costs connected the Baltic to money a "lavish lifestyle." Stern's lawyer astatine the clip called the countersuit "wholly meritless," and it was settled this past January.
In precocious 2021, according to ineligible filings by Largo, Stern abruptly informed Werner and Ben-Nun that the American Copper Buildings — of which Largo was portion proprietor — were successful declaration to beryllium sold. The Largo executives, who had invested $7.3 cardinal successful the project, demanded fiscal records and accused Stern of "self-dealing" by putting the gathering up for merchantability without consulting them.
A fewer months later, Stern dropped a bomb: According to Largo, helium emailed Werner and Ben-Nun that the merchantability had already closed for $837 million. Per Largo's ineligible filings, Stern wired Largo $2 million, but Largo said they were owed different $2.9 million. In 2023, the quality went to arbitration — wherever Largo accused Stern of diverting investors' funds to his ain businesses successful "a drawstring of cases" successful New York and Florida — and past to court. Largo withdrew its claims successful January of this year. Stern's spokesperson said JDS and Largo had "resolved each disputes" successful confidential settlements.
In total, since starting JDS Development successful 2002, Stern and his firm entities person been sued astatine slightest 30 times successful New York and Florida.
Stern denied immoderate wrongdoing, and respective of the cases were settled.
"Anyone who successfully develops transformative large-scale projects understands that gathering skyscrapers isn't easy," helium told BI. "JDS has a 20-plus-year way grounds of and estimation for designing, developing, and completing immoderate of the astir architecturally important and analyzable projects successful the satellite and delivering beardown returns to our investors and partners, and that volition continue."
As Stern shifted his absorption to Miami, the signifier of ambitious projects accompanied by ineligible disputes continued. His archetypal large task there, Monad Terrace, drew lawsuits from investors and an designer implicit allegations of mishandling money, and residents person complained astir operation and plan defects.
More recently, there's been a hint of a rift with Vacchi, his caller concern partner. In December, a erstwhile advisor connected the Mercedes-Benz Places task sued Vacchi's institution implicit $1.7 cardinal successful fees. The ailment besides alleged that Vacchi tried to propulsion retired of the task and asked Stern to wage him backmost $35 cardinal conscionable 3 weeks earlier their concern was made nationalist this past October. In a memo cited successful the lawsuit, the advisor raised concerns that the task was going to spell "significantly implicit budget" and questioned Stern's quality to prosecute talent. "Their sanction successful the marketplace is beauteous bad," helium wrote.
A spokesperson for Stern said the allegations successful the suit were false, adding that Stern and Vacchi had "a large relationship" and continued to enactment together.
Over the years, Stern has go a acquainted look astatine glitzy events similar Art Basel Miami Beach and the Miami Grand Prix, often traveling by backstage plane. (Last year, a backstage pitchy relation sued Stern, saying helium owed the institution much than $1.2 million; Stern's spokesperson called the suit "meritless." The lawsuit is inactive pending.)
In 2021, Stern sold his Walker Tower flat for $21 million. He present lives chiefly successful a $10.5 cardinal waterfront spot successful a Miami vicinity location to David and Victoria Beckham and the media tycoon Barry Diller. A Riva Rivale vessel — which typically costs upward of $2 cardinal — is moored astatine Stern's dock, and helium has collected "a mates of dozen" cars, including an Audi R8 Spyder and a Mercedes-AMG GT S, helium told The Real Deal successful 2016.
In 2021, helium finished his archetypal large Miami project, Monad Terrace, a 14-story waterfront gathering designed by the French designer Jean Nouvel wherever condos started astatine $3 million. It rapidly became the go-to residence for those who preferred the laid-back vibe of Miami Beach to the bustle of downtown. James Koutoulas, the CEO of the hedge money Typhon Capital Management, moved successful in 2022 and throws Art Basel parties connected his expansive terrace. "Monad's an perfectly beauteous building," Koutoulas said. "You person billionaires, household offices, CEOs successful here."
Recently, though, residents person complained astir operation issues. In December 2024, a lawyer for the Monad Terrace Condominium Association requested mediation to code what the lawyer described arsenic "defects and deficiencies" with the building's roofing, showers, exterior railings, waterproofing, and different components. Koutoulas said that aft conscionable 3 years the building's alloy reinforcing bars had rusted, creating drip patterns down the stucco terraces overlooking Biscayne Bay. (Stern's spokesperson said this benignant of mediation was emblematic for caller operation successful Florida.)
Stern is waiting for the city's support to rezone the adjoining spot truthful helium tin physique a 400-foot condo gathering — much than doubly the existing 150-foot limit. "It's a atrocious look erstwhile you physique an ultraluxury boutique property, and there's a ton of unresolved problems, and we're going to springiness you an objection to physique close adjacent door," Koutoulas told BI. Stern told BI that helium was successful mediation with the condo committee and that they were "on a bully way to get this resolved."
Monad Terrace has besides faced respective lawsuits, including a $45.8 cardinal owe quality that was dismissed aft Stern paid the loan, an on-and-off ineligible conflict with the designer Ateliers Jean Nouvel implicit $213,000 successful plan fees that was yet settled connected confidential terms, and a 2021 suit from Ariel Ackerman's Ackerman Development and Daniel Minkowitz's Mink Development alleging Stern had a "pattern and signifier of duping investors." Stern denied the allegations successful the second suit, which helium yet won; Ackerman and Minkowitz were ordered to wage his ineligible fees aft they failed to prosecute a caller attorney.
Stern is moving up with his different Miami buildings: Mercedes-Benz Places and the Dolce & Gabbana tower, some successful concern with Vacchi, whose household owns a 7 cardinal euro manufacturing company.
Documents submitted successful the December suit against Vacchi amusement the advisor for the Mercedes-Benz building, John Stamoulis, raised concerns astir the task this past summer. The suit alleges that Stamoulis, who enactment unneurotic fiscal and feasibility reports for the building, said the project's full costs would beryllium acold higher than the $730 cardinal JDS projected. For instance, the fund for factual could beryllium arsenic precocious arsenic $170 million, compared with JDS's estimation of $140 million, helium wrote successful an email included successful ineligible documents. He besides said the building's exterior could outgo $70 cardinal to $80 million, making it "the astir costly facade ever for Miami" and a "very precocious risk." Stamoulis added helium had "never seen specified costly taste."
"Construction costs are taxable to assorted macroeconomic factors," Stern's spokesperson said. "JDS continues to negociate these successful the mean people of concern and the task is nether operation and selling strongly."
In an email from October, different improvement partner, Rafi Gibly, called the Mercedes-Benz task "a runaway train." (Gibly told BI he's inactive moving connected the gathering and declined to remark further.)
Despite the assertion successful Stamoulis' suit that Vacchi said helium was withdrawing from the Mercedes-Benz deal, his and Stern's concern remains intact. Stern's spokesperson said Stamoulis was "indirectly progressive successful insignificant aspects of the task for a little play of time" and was terminated for cause. In February, Vacchi gave a tour of the Dolce & Gabbana tower's recently opened income assemblage to a Venezuelan TV host, who successful crook shared a video with his 1.3 cardinal Instagram followers. Stern's spokesperson said Stern and Vacchi were moving unneurotic connected different task acceptable to beryllium announced successful the coming weeks.
Stern said his collaborations with luxury brands successful Miami had been precise intentional. "There's a familiarity with the manner and ethos of a marque that helps you archer the communicative of a building," helium said. Naturally, helium remains bullish connected his firm's aboriginal successful the city. "Just arsenic we elevated the high-end residential marketplace with dynamic and iconic projects successful New York," helium said, "we expect to bash the aforesaid successful Miami."
Gil Dezer of Dezer Development, a person of Stern's who built Miami's Porsche Design Tower, said Stern was connected his mode to being considered a apical Miami developer contempt the challenges.
"You person to get astatine slightest 5 buildings nether your belt," Dezer said. "There's a batch of one-hit wonders successful this town."
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