Embattled Park Slope Seniors Pushed Out of Elderly Home Finally Get Their Millions

PROSPECT PARK, BROOKLYN — The developer who purchased and then sold the Prospect Park Residence Retirement Community — setting into motion a long-running standoff with a group of five elderly female residents who didn't want to leave — has delivered the nearly $3.5 million he owed them to an escrow account.

The news, first reported by DNAinfo, was confirmed Friday by attorneys with the Legal Aid Society who are representing several of the residents.

In 2006, Haysha Deitsch bought the massive property, located at 1 Prospect Park West, for $40 million, according to Crain's.

In 2013, Sugar Hill Capital Partners agreed to buy it from him for $76 million. Reports suggest that it will be turned into a condo property, but that can only proceed once the building is empty.

Many residents left following the Sugar Hill sale. However, five remained — including a Holocaust survivor, DNAinfo reported.

Multiple lawsuits followed. The seniors accused Deitsch of trying to force them out by allowing the condition of the building to deteriorate; the developer, in turn, accused them of defamation.

Earlier this summer, the remaining residents agreed to leave the building by Sep. 1 in exchange for nearly $3.5 million.

Frank Carone, an attorney for Deitsch, said each woman would receive $533,333, while 11 additional former residents would be awarded $25,000.

In July, the New York Post reported that Deitsch had failed to deliver a $3.1 million payment he owed as part of the deal. The developer reportedly blamed Sugar Hill, claiming the firm hadn't given him the cash he needed.

The money was finally put into an escrow account on Aug. 26, according to Frederick Millett, a lawyer with Legal Aid.

Millett said the deal with Deitsch requires the residents to leave within 45 days after getting their money — which means they now have until Oct. 10 to vacate the premises.

However, in the meantime, Millett said some of the seniors have told Legal Aid that conditions in the building are getting worse.

"Food is being undercooked, portions are decreasing, the kitchen staff are not accommodating some of the residents’ dietary restrictions, and there appear to be no alternative food options like there were in the past," Millett wrote in an email, citing the residents.

Millett said he's also been told that security guards are being overworked, to the point where they are "almost falling asleep on the job."

Legal Aid is in contact with Brian Rosenman, the building's temporary manager, in an attempt to address the alleged problems, the lawyer said. An attorney for Rosenman, Jeffrey Sunshine, couldn't immediately be reached for comment on Friday.

An attorney for Deitsch likewise didn't respond to a request for comment on Friday, and a staffer at Sugar Hill said the company's spokesman was on vacation until Sep. 13.

Pictured at top: The Prospect Park Residence. Photo by John V. Santore