Park Slope Apartment Building Faces Foreclosure

PARK SLOPE— A 52-unit Park Slope apartment building developed with an affordable-housing tax break now faces foreclosure after its owner allegedly defaulted on its mortgage despite a prior agreement that gave the borrower additional time to resolve the debt.

Santander Bank has moved to foreclose on 287 Prospect Ave., near Sixth Avenue, after developer Joseph Scarpinito allegedly failed to repay a $9 million mortgage, according to a new lawsuit filed in Kings County Supreme Court.

The Aug. 20 case was filed by SIG RCRS A/B MF 2023 Venture LLC, the entity pursuing the mortgage foreclosure.

The lender claims the borrower owes $6.9 million, including the outstanding principal, interest, late charges and other fees.

The filing includes an initial default notice, a notice accelerating the debt, a forbearance agreement and a notice of pendency.

The documents show the foreclosure followed an earlier effort to resolve the mortgage problems rather than coming as the first step after a missed payment.

Scarpinito has not filed a response in the case.

How Did The Mortgage Reach Foreclosure?

The property's mortgage problems date back at least to 2024, when the lender previously pursued foreclosure after Scarpinito allegedly missed payments for eight months.

Scarpinito ultimately paid $447,000 toward the debt using proceeds from the sale of another Brooklyn apartment building, 20 Terrace Place in Windsor Terrace, which he sold to Witnick Real Estate Partners last year for $6.9 million, according to court filings and the city register.

The latest case shows that the parties later entered into a forbearance agreement, giving the borrower additional time under negotiated terms.

The lender subsequently issued an initial default notice and a notice accelerating the debt before filing the new foreclosure action.

The court filing also includes a recourse guaranty and an assignment of the property's leases and rents, documents that provide the lender with additional protections in the event of a default.

Why Did The Building's Tax Bill Soar?

The mortgage dispute comes as the building faces a dramatically higher property-tax burden.

287 Prospect, originally known as St. John's Apartments, was developed in 1998 through the New Housing Opportunities program, which offered low-cost loans and tax benefits to developers who agreed to maintain stabilized rents for tenants in certain middle-income income bands.

The building's 25-year tax abatement expired in 2024.

For years, the property paid roughly $22,000 a year in property taxes, according to Department of Finance records. In 2025, the bill climbed to about $385,000.

That's an increase of roughly 17 times the previous annual bill.

The expiration also changed the building's rent restrictions.

A one-bedroom apartment at 287 Prospect rented for about $4,000 a month in February, according to StreetEasy.

With the tax break gone, the property was no longer subject to the same rent-stabilization requirements tied to the New Housing Opportunities program.

Who Is Behind The Building?

John Scarpinito, the original developer and owner of Gowanus-based J.E.S. Plumbing and Heating, constructed the eight-story building on the site of a former warehouse.

Joseph Scarpinito, who appears to be his brother, is connected to the property's ownership entity, the John Scarpinito Trust, according to the lawsuit and related records.

The new foreclosure case names 287 Associates, L.P. and other defendants.

What Happens Next?

The lender filed a notice of pendency with the foreclosure case.

The notice of pendency alerts the public that the property faces litigation and puts its ownership in dispute.

If the lender prevails, the property could ultimately be sold through a judicial foreclosure process.

For tenants, however, a foreclosure does not by itself mean an immediate eviction.

Any protections attached to individual apartments would continue to depend on the apartments' legal status and applicable housing laws.