The Real Deal New York

AG halts two of Allure Group’s building buys

Schneiderman among officials investigating firm’s Rivington House deal

June 07, 2016 09:30AM

45 Rivington Street on the Lower East Side (inset: Eric Schneiderman)

45 Rivington Street on the Lower East Side (inset: Eric Schneiderman)

New York state Attorney General Eric Schneiderman is halting two real estate purchases by the Allure Group, the nursing home operator at the center of the Rivington House scandal.

The AG is stopping the closing of the company’s deals for two nursing homes – the Greater Harlem Nursing Home & Rehabilitation Center at 30 West 138th Street in Harlem and Saints Joachim and Anne Nursing and Rehabilitation Center at 2720 Surf Avenue in Seagate, Politico reported.

Schneiderman sent a letter to the nursing homes’ lawyers citing Allure’s much-scrutinized $116 million resale of 45 Rivington Street on the Lower East to developers Slate Property Group, Adam America Real Estate and China Vanke, which planned to build condominium units there.

“Joel Landau (principal at Allure) made misrepresentations to the Department of Health that New Rivington would continue to operate a nursing facility at the site,” the letter said, according to Politico.

Andrew Levander, an attorney for Allure, denied the allegations, telling Politico, “At no time has Allure misled any public authority about its intentions or commitments.”

The Attorney General’s office is investigating the city’s decision to lift a deed restriction on the property in exchange for $16 million from Allure. Comptroller Scott Stringer and U.S. Attorney Preet Bharara are also investigating the decision. [Politico]Ariel Stulberg

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