The Real Deal New York

Allure asks judge to toss AG’s subpoena surrounding Harlem nursing home purchase

Authorities blocked the $32M sale

July 28, 2016 06:20PM

From left: Joel Landau, The Rivington House at 45 Rivington Streeton the Lower East Side and Eric Schneiderman

From left: Joel Landau, The Rivington House at 45 Rivington Streeton the Lower East Side and Eric Schneiderman

The Allure Group is not happy about the New York State Attorney General’s probe into its purchase of a Harlem nursing home.

The company asked a Manhattan court on Thursday to toss state Attorney General Eric Schneiderman’s request for three years worth of records related to the sale of the Great Harlem Nursing Home, the New York Daily News reported. Allure argues that fulfilling the request would be too much of a time and cost burden.

Schneiderman filed an affidavit on Monday in New York Supreme Court in Manhattan seeking to block Allure from purchasing the nursing home. Allure took over operations at the facility in 2014 and has a contract to buy it for $32 million. But the deal is complicated by the ongoing investigations surrounding the Rivington House. Schneiderman alleged in court papers that Allure misled regulators when it purchased Rivington.

Allure purchased the Lower East Side nursing home in 2015 for $28 million, then paid the city $16 million to lift a deed restriction that limited the property’s use to a healthcare facility. Allure then sold the facility for $116 million to developers who plan luxury condos for the property. The city’s Department of Investigation released a report earlier this month finding that City Hall was aware of the discussions that led to the sale. [NYDN]Kathryn Brenzel

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