The Real Deal New York

City turns over Rivington House deal records after Stringer subpoena

De Blasio administration rule change paved way for Vanke’s $116M purchase

March 25, 2016 08:40AM

Scott Stringer and 45 Rivington Street on the Lower Easy Side

Scott Stringer and 45 Rivington Street on the Lower East Side

The city turned over records Thursday related to a land-use rule change at Rivington House on the Lower East Side that paved to way for its $116 million sale to a group led by China Vanke.

Comptroller Scott Stringer had filed a rare subpoena for the documents after the city had dragged its feet in responding to an earlier petition, the New York Times reported.

His office is now reviewing the records.

For-profit nursing home operator the Allure Group bought the 150,000-square-foot property in early 2015 for $28 million. A few months later, it agreed to pay the city $16 million as part of a deal to change a rule that required the building to used for nonprofit business.

Allure sold the property, at 45 Rivington Street, shortly thereafter, to Vanke, Slate Property Group and Adam America Real Estate Group for $116 million. The partners plan to convert the building to luxury condos.

The decision to change the rule was a mistake and the mayor was angered, city officials told the Times. The de Blasio administration has halted all changes to deed restrictions as it reviews its procedures. [NYT]Ariel Stulberg

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