Harlem developer facing $21M suit by condo board files for bankruptcy

The entity that developed a Harlem condominium building at 2098 Frederick Douglas Boulevard, called Gateway II LLC, led by Michael Gaetano, was placed into bankruptcy a year after a state Supreme Court judge sided with the condominium board in its $21 million suit against the developer.

The bankruptcy is Chapter 7, and states the entity has no assets and has liabilities of $21 million, which is the amount sought by the condo board. Chapter 7 document and Case LINK

The board of managers of the condo building at 2098 Frederick Douglass Boulevard alleged in a 2014 breach of contract lawsuit that the Gaetano entity Gateway II LLC did not obtain a permanent certificate of occupancy as promised, and it did not do other construction work as agreed to in the offering memorandum. A state supreme court justice granted the board’s motion in February 2022 and Gaetano appealed. New York State Supreme Court case, 652225/2014, was titled Board of Managers of the Gateway Condominium – v. – Gateway II, LLC et al. According to the 2014 complaint, “This action arises from the existence of substantial egregious construction defects in the Gateway Condominium, a condominium building located at 2098 Eighth Avenue… By reason of the foregoing, Plaintiff has been damaged in a sum to be determined at trial but in no event less than $21,000,000 together with interest and the costs and disbursements of this action, including reasonable attorneys’ fees.”

Direct link to the property’s ACRIS page and link to DOB NOW portal.