The Real Deal New York

Lawyer asks judge for liens after Haysha Deitsch misses payments to senior residents

Embattled owner of 1 Prospect Park West owes tenants $3.1M to vacate their apartments

August 03, 2016 10:31AM

1 Prospect Park West, Brooklyn

1 Prospect Park West in Park Slope

Embattled assisted living owner Haysha Deitsch could face liens on two Park Slope properties after failing to make court-ordered payments to elderly residents of 1 Prospect Park West, whom he has tried to evict.

Deitsch, who agreed to pay $3.35 million to five residents at the assisted living facility in exchange for them vacating their apartments, failed to pay the latest $3.1 million installment.  In response, an attorney for the residents, Frederick Millet, filed a motion on Tuesday asking a judge to order a lien on two properties on Fourth Avenue that Dietsch acquired last year for $10 million, the New York Daily News reported. He plans an 11-story, 16-unit luxury condo at 243 Fourth Avenue.

Deitsch bought 1 Prospect Park West, a 130-room senior assisted living facility, for $40 million in 2006, and subsequently forced out around 100 residents by turning off the air conditioning and serving rotten food.  In March, he sued the children of the tenants for $50 million, claiming the children were blocking his plans to sell the building.

The controversial landlord agreed to sell the building to Sugar Hill Capital Partners for $76.5 million.

After a court battle, Deitsch was ordered to pay five remaining tenants $3.35 million to leave but so far, Deistch has paid $250,000 to tenants under the settlement agreement. He’s claimed he was unable to pay the tenants because he’s owed money by Sugar Hill.

Without Dietsch’s payment, three out of five of the remaining tenants — women over age 91 — may lose non-refundable down payments for their new homes. According to the Daily News, Deitsch also faces $10 million in liens related to seven wrongful death claims.  [NYDN]E.B. Solomont

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