The Real Deal New York

Department of Health may sue Allure over Rivington House

Nursing home operator misled state agency, officials claim

June 03, 2016 10:44AM

From left: Allure's Joel Landau via his Twitter account and 45 Rivington Street on the Lower East Side

From left: Allure’s Joel Landau via his Twitter account and 45 Rivington Street on the Lower East Side

The state’s Department of Health may take legal action against the Allure Group over its resale of 45 Rivington Street on the Lower East Side.

Allure, a for-profit nursing home operator, misled the agency about its intentions for the formerly deed-restricted property, which it ultimately resold for luxury condominium developer to Slate Property Group, Adam America Real Estate and China Vanke for $72 million, officials said, according to Crain’s.

“The operator made representations of their intent to continue to operate the facility as a nonprofit nursing home,” DOH Deputy Commissioner Daniel Sheppard wrote in a statement. “It appears that a number of these representations were misleading. [DOH] is currently exploring all legal and other avenues available to address this situation.”

The city’s decision to lift a deed restriction at the property in exchange for $16 million has come under intense scrutiny, drawing investigations from law enforcement at the city, state and federal levels.

The furor has led officials to halt all deed restriction changes until the vetting process for them can be reformed. [Crain’s]Ariel Stulberg

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