Inflated BK Condo Costs Funded Developer's Lavish Lifestyle: Suit

PARK SLOPE, BROOKLYN — The developer of a Park Slope condo building is being accused by his business partner of inflating costs to finance his "lavish lifestyle," according to a new lawsuit.

The suit claims Michael Stern, the head of JDS Development, racked up project management costs when building the 613 Baltic St. building nearly 300 percent more than its original budget, the Real Deal reports.

Filed by an LLC tied to Stern's business partner on the project, Largo Development, it is the latest in a three-year legal battle over the site, according to the outlet.

The latest $40-million suit claims that the price hikes on project were to “to cover shortfalls on Stern’s other projects and businesses and finance Stern’s lavish lifestyle of private jets, fancy car collections, and elaborate residences.”

The "revenue diversion scheme" depleted both Largo's initial investments in the project and their share of the profits, the company claims.

An attorney for JDS told the Real Deal they see the suit as an attempt to “deflect attention” from two lawsuits JDS filed against Largo, one accusing the group of breaching its contract on the Park Slope project and another saying Largo owners misrepresented their experience when pitching a project in Manhattan.

Largo did not return the Real Deal's requests for comment.

The 613 Baltic St. property, known as Baltic, launched in 2017 and includes more than 40 luxury condos in its 11-story building.

Read the full Real Deal story here.