Thursday, 16 June 2016

Notorious Park Slope Landlord Faces Foreclosure on Senior Home

That would also spell trouble for families waiting on settlements from the owner

The problems surrounding Prospect Park Residence, the Park Slope assisted living facility, just got a whole lot messier. The owner of the property, Haysha Deitsch, has defaulted on the $33.4 million mortgage he took out on the building in 2006, and now a real estate investor has purchased that debt, and is looking to foreclose on the property, the Brooklyn Paper reports.

Deitsch’s lawyer said they would fight the foreclosure, but the Brooklyn Paper’s investigation into the matter has revealed some startling finds. The purchaser of the debt goes by Prospect Park Holder. Court documents listed the manager for that company as Brian Shatz, who is also the founder of Madison Realty Capital, most notably the developers behind 1 Great Jones Alley.

If they do foreclose on the property however, it would take away the $10 million a judge ordered to be set aside for families suing the senior home for wrongful deaths at the facility.

The lawyer for those families told the Brooklyn Paper that he believes the purchaser of the debt is in fact the same real estate company that Deitsch tried to sell the property to for $76 million in 2014, which subsequently led to all the lawsuits. Deitsch’s lawyer dismissed these claims as "frivolous."

The only good news from all of this murky drama? The five remaining tenants at the facility recently reached a $3.35 million settlement with Deitsch and will move out of the Residence by the end of August.



from
http://ny.curbed.com/2016/6/16/11954136/park-slope-senior-home-lawsuit-foreclosure

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