Cabrini to close this summer, give way to condos

TRD New York /
Mar.March 08, 2012 09:00 AM

Negotiations to preserve the Cabrini Center for Nursing and Rehabilitation failed, and the East Village facility will close this summer, EV Grieve reported, to make way for a condominium development by Magnum Real Estate President Ben Shaoul.

Shaoul acquired the 84,000-square-foot building, at 542 East 5th Street, for $25.5 million in November and reports immediately began circulating that the center would close. But at the bequest of the center, the community and elected officials, Shaoul worked to find a buyer that would preserve the nursing facility, a spokesperson for the developer said. But those attempts ultimately failed.

Cabrini’s lease expires in April, but the non-profit, 240-bed center will stay open through the summer to finalize its closure. Once it vacates the property, Shaoul will renovate the building and repurpose it for residential use.

According to a letter Cabrini distributed yesterday, the closure process will cost the center $7 million, and it has requested Department of Health grants to cover those costs, which are connected to unemployment insurance, pension funding and severance pay. Without the grant, Cabrini said it will be forced into bankruptcy.

Cabrini is looking to sell 117 beds to a private nursing home operator in Borough Park so that some residents and employees will have the option of moving to Brooklyn. The sale, which includes the maximum number of beds allowed, would offset closing costs by about $2.5 million, according to Cabrini. [EV Grieve]


Related Articles

arrow_forward_ios
Magnum Real Estate Group's Ben Shaoul (Credit: Getty Images and iStock)

Ben Shaoul uses Bitcoin to sell retail condo for $15M

Magnum Real Estate's Ben Shaoul and 385 First Avenue (Credit: Getty Images and StreetEasy)

Investor linked to detained Chinese oil tycoon snaps up 10 condos at Ben Shaoul’s Gramercy Park tower

Ben Shaoul and Liberty Toye at 62 Avenue B in Brooklyn (Credit: Getty Images and Liberty Toye)

Ben Shaoul sells Liberty Toye building to Bronx investor for $85M

Ben Shaoul in contract to sell incomplete Liberty Toye for roughly $85M: sources

Ben Shaoul in contract to sell incomplete Liberty Toye for roughly $85M: sources

The PH at Ben Shaoul’s 100 Barclay didn’t list for $105M as rumored

The PH at Ben Shaoul’s 100 Barclay didn’t list for $105M as rumored

Take 3: Ben Shaoul launches sales at rebranded LES condo

Take 3: Ben Shaoul launches sales at rebranded LES condo

WATCH: Ben Shaoul embraces Bitcoin

WATCH: Ben Shaoul embraces Bitcoin

Compass out, Elliman in at Ben Shaoul’s 196 Orchard Street

Compass out, Elliman in at Ben Shaoul’s
196 Orchard Street

arrow_forward_ios