City finds new site to replace senior housing lost in Rivington House deal

Administration will subsidize 100 apartments

New York /
Jan.January 09, 2018 09:50 AM
 

Beth Hamedrash Hagadol synagogue and Mayor Bill de Blasio (Credit: Howard Zimmerman Architects/Landmarks Preservation Commission and Getty Images)

The city has found another location for senior housing to replace the nursing home lost in the controversial Rivington House deal.

The de Blasio administration plans to subsidize 100 apartments for seniors near the Beth Hamedrash Hagadol Synagogue, which was demolished after a fire last year, Politico reported. In 2016, the city selected 30 Pike Street for new senior housing, but subsequently determined that the city-owned site wasn’t development friendly.

According to Bowery Boogie, last year the Chinatown Planning Council Housing Development Fund Company moved forward with plans to expand a senior facility at 50 Norfolk Street onto the neighboring synagogue site. Expanding the planned project to include city-subsidized units allows the mayor to keep his promise to pay at least $16 million to replace the senior housing lost in the Rivington House sale.

In 2015, Allure Group paid the city $16 million to lift restrictions on the deed for the Lower East Side nursing home. The company then turned around and sold the property to investors, including developer Slate Property Group for $116 million. The mayor claimed Allure hid its true intentions and had promised to reposition the home as a for-profit nursing center.

Last week, New York State Attorney General Eric Schneiderman announced that he reached a settlement with the Allure Group, following an investigation into the developer’s practice of closing deed-restricted nursing homes and then converting them into luxury residential properties. As part of the settlement, Allure agreed to open two new nursing homes in Manhattan and Brooklyn. [Politico]Kathryn Brenzel


Related Articles

arrow_forward_ios
Clockwise from top: Mayor Eric Adams, Bruce Teitelbaum, Adrienne Adams and Suri Kasirer (Getty/Adams via Paul Dilakian)
A make-or-break moment for NYC’s housing crisis
A make-or-break moment for NYC’s housing crisis
A photo illustration of Veyoel Moshe Gardens in Kiryas Joel (LoopNet, iStock)
Developers seizing on Hasidic suburb’s explosive growth
Developers seizing on Hasidic suburb’s explosive growth
Mayor Eric Adams and Extell's Gary Barnett (Photos by Paul Dilakian)
Real estate’s titans talk building, selling, and reinventing the city
Real estate’s titans talk building, selling, and reinventing the city
Moinian's Joseph Moinian and Bushburg's Jordan Franklin with rendering of Empire State Dairy Company residences (Moinian Group, LinkedIn, Bushburg)
Bushburg, Moinian snag $105M loan for East New York luxury project
Bushburg, Moinian snag $105M loan for East New York luxury project
Naftali Group's Miki Naftali, BRP Companies' Meredith Marshall (Photos by Paul Dilakian)
Miki Naftali, Meredith Marshall talk development, death of 421a
Miki Naftali, Meredith Marshall talk development, death of 421a
Gary Barnett
Gary Barnett has something to say
Gary Barnett has something to say
Southampton Village mayor Jesse Warren (Getty Images, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Southampton Village allows owners to collect summer’s rent upfront
Southampton Village allows owners to collect summer’s rent upfront
Ben Shaoul and 1457 North Main Street (Getty, LoopNet)
Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
Ben Shaoul plans 376-unit complex near L.A.’s Chinatown
arrow_forward_ios

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

Loading...