New York AG investigating Rivington House deal

Schneiderman opens probe into LES property now owned by Slate, Vanke and Adam America

New York /
Apr.April 05, 2016 05:50 PM

New York Attorney General Eric Schneiderman is getting involved in the controversy surrounding the $116 million sale of a former healthcare facility on the Lower East Side. His office has opened an investigation into the matter and sent subpoenas last week to several players involved in the deal.

The November removal of a deed restriction at 45 Rivington Street allowed the former HIV/AIDS-care facility’s owner, nursing home operator Allure Group, to sell it for $116 million to a partnership between Slate Property Group, China Vanke, and Adam America Real Estate.

A spokesperson for Schneiderman confirmed the probe, according to the Wall Street Journal, which will only heighten scrutiny surrounding the de Blasio administration’s lifting of the deed restriction on 45 Rivington Street. The restriction limited the building’s use to a nonprofit residential healthcare facility, but Slate and its partners are planning to convert the 150,000-square-foot property into a luxury condominium building.

The city’s Department of Investigation and City Comptroller Scott Stringer’s office are already looking into the matter, with officials accusing Allure of having misled the city about its plans for the building.

City officials claim the lifting of the deed restriction was intended to help the creation of a for-profit nursing center at Rivington House, while the mayor’s office said it had no knowledge of the arrangement, which saw Allure Group pay the city more than $16 million in exchange for lifting the restriction.

The nursing home operator, which stood to make a tidy profit on 45 Rivington Street after acquiring the property for $28 million in early 2015, reportedly owes the city more than $5 million in back taxes. [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
Eric Adams, Kim Darga
Basement apartment pilot fizzles, showing need for state action
Basement apartment pilot fizzles, showing need for state action
From left: Arker Companies’ Alex Arker and Slate Property Group’s David Schwartz along with rendering of Edgemere Commons in Far Rockaway (Getty, Arker Companies, Slate Property Group, Aufgang Architects)
Arker, Slate land grocery tenant at large Rockaway housing project
Arker, Slate land grocery tenant at large Rockaway housing project
Slate Property Group’s David Schwartz, Martin Nausbaum; RiseBoro Community Partnership’s Scott Short and rendering of 326 Rockaway Avenue (Getty, Google Maps, Slate Property Group, RiseBoro Community Partnership)
Slate, RiseBoro land $122M to build Brownsville affordable project
Slate, RiseBoro land $122M to build Brownsville affordable project
 Slate Property Group’s David Schwartz and Martin Nussbaum with 123 East 54th Street (Slate, Google Maps)
Slate buys Midtown apartment building, leading midsize i-sales
Slate buys Midtown apartment building, leading midsize i-sales
From left: Adam Altman, Martin Nussbaum, Brian Cooper, Joe Koicim
Photos: Inside Slate Property Group’s holiday party at Casa Cipriani
Photos: Inside Slate Property Group’s holiday party at Casa Cipriani
From left: Slate’s David Schwartz and Martin Nussbaum with 62 and 68 Hanson Place
Slate acquires Fort Greene development site from Salvation Army
Slate acquires Fort Greene development site from Salvation Army
Goldman Sachs' David Solomon and 15 Brooklyn Park Drive (Streeteasy, Getty)
Goldman Sachs buying $90M Brooklyn Heights apartments
Goldman Sachs buying $90M Brooklyn Heights apartments
Slate Property Group principal Martin Nussbaum and 301 West 22nd Street in Manhattan, NYC (Google Maps, Slate Property Group)
Slate picks up $70M Chelsea multifamily portfolio
Slate picks up $70M Chelsea multifamily portfolio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...