Allure Group owes city $5.2M in back taxes

The for-profit nursing home operator is at the center of the Rivington House sale

TRD NEW YORK /
Apr.April 04, 2016 11:38 AM

Allure Group, the for-profit nursing home operator at the center of the Rivington House scandal, owes the city $5.2 million in back taxes, according to city records.

Brooklyn-based Allure bought 45 Rivington Street on the Lower East Side for $28 million in early 2015, and after a deed change by the city, sold it to Slate Property Group, Adam American Real Estate Group and China Vanke for $116 million.

The sale sparked controversy as the property, which was a former nonprofit AIDS-care facility, will be turned into 100 luxury condominiums units, and de Blasio administration officials accused Allure of misleading the city.

The New York Post reported Allure was incorporated in 2012 and owes the city millions in back taxes on a Brooklyn nursing home that used to be a nonprofit. It also owes $853,795 an another Brooklyn nursing home that will be converted into housing, according to city records.

Before the city agreed to lifting the deed restriction at 45 Rivington Street, Joel Landau, an Allure executive, wrote in an email that the property would be maintained as a nursing home. On his resume, Landau says he is “master at turning poor-performing organizations into high-performing profitable companies,” the tabloid reported.

Landau’s partners are Marvin Rubin and Solomon Rubin, the newspaper reported, and most of Allure’s purchases are made using limited liability companies and some are heavily mortgaged.

Comptroller Scott Stringer initiated the investigation into the deal, subpoenaing the sale’s documents, which the city turned over. City Council member Margaret Chin and Manhattan Borough President Gale Brewer also requested the documents last week. [NYP]Dusica Sue Malesevic


Related Articles

arrow_forward_ios
From left: David Lichtenstein, Nathan Berman and David Schwartz

Not so fast, vultures: Multifamily among better “food groups” poised to weather pandemic

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

Tonight on TRD Talks: Maintaining multifamily in a tumultuous time

Prince Realty Advisors founder David E. Ash and 123 Hope Street (Credit: Google Maps)

HUBBNYC buys Williamsburg mixed-use building for $84M

Mayor Bill de Blasio delivered the message this week ahead of a formal plan to combat social gathering in the city. (Credit: Lev Radin/Pacific Press/LightRocket via Getty Images and Cindy Ord/Getty Images)

New York City to enforce social distancing at parks, playgrounds

New York City Comptroller Scott Stringer (Credit: Andrew Burton/Getty Images, iStock)

Coronavirus will cost city billions in tax revenue: comptroller

Mayor Bill de Blasio (Photo by William Farrington-Pool/Getty Images)

Mayor questions allowing condo construction during pandemic

Gov. Andrew Cuomo (Credit: Bruce Bennett/Getty Images, iStock)

Governor gives NYC 24 hours to make crowd-reduction plan

Mayor Bill de Blasio (Photo by William Farrington-Pool/Getty Images)

De Blasio says he will pursue rent moratorium

arrow_forward_ios
Loading...