Developer Closes On Purchase Of Building Which Provided Assisted Living For Seniors

Sarah Crean -
1 Prospect Park West (Photo by Park Slope Stoop)

The long saga at 1 Prospect Park West may be over.

Sugar Hill Capital Partners has closed on the purchase of 1 Prospect Park West — at Grand Army Plaza — for $84 million, NY Yimby reported today. The building most recently housed an assisted living facility for seniors.

NY Yimby says the developer seeks to convert the nine-story, 169,410 square foot building into “luxury residential units.” But added that “it wasn’t specified whether they will be rentals or condominiums.”

As Park Slope Stoop editor Donny Levit reported — the drama began in 2014 when building owner Haysha Deitsch tried to empty 1 Prospect Park West of its residents so that he could sell it for $76 million to Sugar Hill Capital Partners. He bought the building in 2006 for $40 million.

Deitsch threatened to evict elderly residents because of “financial hardship,” created “deplorable living conditions,” raised the ire of local and citywide politicians, and at one point refused to turn on the air conditioning for the residents. A legal stand-off ensued, and tenants left one-by-one.

After Deitsch defaulted on the building’s $33.4 million mortgage this past June, an LLC called One Prospect Park Holder purchased Deitsch’s debt. As we noted in June, there was concern that Deitsch and One Prospect Park Holder were actually working together in order to avoid paying liens on the property tied to lawsuits filed by tenants.

An attorney representing one of the building’s elderly tenants charged that the new LLC was none other than Sugar Hill Capital Partners. Both Deitsch and and One Prospect Park Holder denied the charge that collusion was taking place. As of publication, we do not know the status of any liens on the building.

More than 125 senior citizens, including Holocaust survivors and dementia patients, were ultimately forced out of their apartments. Five elderly women who refused to leave reached a $3.35 million settlement with Deitsch, providing each tenant with $533,333 and an August 31 extension.