377 West 11th Street (left) and 115 Spring Street are suing Downtown Properties.
Downtown Properties, a Manhattan-based residential management firm, is
facing at least two lawsuits alleging that it misappropriated funds and
failed to account for rent receipts, common charges and other payments. The first plaintiff, a co-op owned by Riverbank South Owners Corp.,
filed a June lawsuit in New York State Supreme Court, alleging that
Downtown Properties failed to account for $550,000 in funds. The co-op, located at 377 West 11th Street, entered a 2007 agreement
with Downtown Properties to manage its finances, according to the
lawsuit. In June 2008, Riverbank South officials deposited $1.2 million
into its Bank of America account after it refinanced its mortgage, and
one month later asked Downtown Properties to transfer $500,000 into a
certificate of deposit with NCB Bank. In an April lawsuit filed in New York State Supreme Court, the second
plaintiff, 115 Spring Street, alleges that at least $790,000 was
missing from the operating account for the property, a loft building
that was originally purchased by four families in 1972. More
