Prospect Heights Building in Limbo Finally Gets C of O -- But Buyers Still Can't Close

The Karl Fischer-designed building at 659 Bergen Street in Prospect Heights finally received its certificate of occupancy May 17. Some buyers have been in contract since 2010 and expected to move in long ago. Thirty-day notices were sent out June 4 telling buyers to prepare their mortgages and get ready to move. But then the next day another letter went out telling them to disregard the first one and that the owner is working to resolve some title issues, a source told us. As it turns out, a lis pendens was filed against the building in February, which means the buyers cannot close.

“They cannot close until the foreclosure is resolved,” said an attorney for one of the buyers, who requested anonymity. “Either they make a settlement with the bank to close or someone else buys the debt. It’s an objection to title.” The impact on the buyers has been “devastating,” he continued. “There’s a lot of money and emotion tied up in this.” His client could cancel the contract and get back the deposit, but doesn’t want to. So much time has elapsed that it would be impossible for buyers to find a comparable space in the same area for the same price, he said.

But the end may be in sight. “Our client believes everything will be resolved shortly,” said Jeffrey Zwick of Jeffrey Zwick & Associates, the attorney for owner Boaz Gilad. He declined to comment further.

Buyers in Limbo at Prospect Heights Building [Brownstoner]