Wednesday, 12 October 2016

Park Slope senior home sale closes for $84M

Senior home Prospect Park Residence is poised to undergo a residential conversion

Three years and multiple lawsuits later, Sugar Hill Capital Partners has closed on their troubled purchase of Park Slope senior home Prospect Park Residence, The Real Deal reports. The property on the corner of Union Street and Prospect Park West, formerly a 130-bed senior home, will reportedly undergo a residential conversion.

The building has been mired in scandal since notorious Brooklyn landlord Haysha Deitsch first announced in 2014 that the facility was “no longer [financially] viable,” giving the building’s elderly residents 90 days notice to pack up their belongings. Some residents sued Deitsch and the Department of Health, alleging that the home immediately started cutting back on essential services following the announcement, even though elderly and infirm tenants still lived there.

All but a handful of residents were out of the building by November, when the reason for the urgent evictions came out: Deitsch had already sold the building to Sugar Hill Capital for $76.5 million. Sugar Hill Capital was in the process of suing Deitsch for not purging the building fast enough and living up to Deitsch’s promise of delivering the building empty. (By court order, the few remaining seniors were allowed to stay, though conditions kept getting worse.)

Just to ensure everything was as ugly as possible, Deitsch then sued the children of the remaining tenants for $50 million, arguing they were trying to block the eviction and foil the sale. There was a bright spot in all of this earlier this spring, when Deitsch reached a $3.35 million settlement with five of the residents who’d initially sued. But Deitsch went on to default on those payments, citing Sugar Hill’s refusal to move forward with the sale.

In September, Deitsch finally ponied up the settlements, and Sugar Hill has officially closed on the deal paying $84 million, according to TDR. (The lawsuit against the DOH remains ongoing.)

Sugar Hill closes on $84M purchase of 1 Prospect Park West [TRD]



from
http://ny.curbed.com/2016/10/12/13257068/park-slope-senior-sale-closes

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