When Billy and Kate to moved New York to work at the Clamp Center building, they bought this apartment to live in. When Billy found his old pet Gizmo at the Clamp building, he instructed Kate to take Gizmo to their apartment later, but Gizmo soon got wet and spawned a batch of new, sinister Mogwai that locked him in an air vent. Kate mistakes the crazy Mogwai Daffy, who was left behind by the other three, for Gizmo, and takes him back to the apartment where he breaks things, plays with his food and messes up the kitchen.
Billy then comes home and immediately notices that it is not Gizmo so they stuff Daffy into a bag and takes him away to the Clamp Center to prevent the other mogwai from getting wet, but not before Murray Futterman and his wife Sheila visits them in the apartment briefly. After most of the gremlins (except Greta) in the Clamp building had been defeated, Gizmo asks Billy and Kate as they walk back to their own apartment if they have cable TV.