Allure Group, troubled nursing home developer, lands loan for Brooklyn project

Popular Community Bank provided $55M refi loan for 2266 Cropsey Ave

TRD New York /
Jun.June 08, 2018 04:30 PM

Joel Landau of the Allure Group and 2266 Cropsey Avenue

Allure Group, the real estate developer at the center of the Rivington House scandal, has landed a $55.4 million loan for a nursing home project in Brooklyn.

Lender Popular Community Bank has assumed the existing unpaid $29 million balance at King David Center for Nursing and Rehabilitation at 2266 Cropsey Avenue, off the Belt Parkway in Bath Beach, according to property records filed this week. The lender also provided a $26.3 million gap mortgage, records show.

Allure Group, led by Joel Landau, gained infamy for its role in the sale of the community health facility Rivington House on Lower East Side. In January, the firm settled with then-New York Attorney General Eric Schneiderman for $2 million following an investigation into the sale of deed-restricted nursing homes Rivington House and another one in Brooklyn. The city accused Allure of lying of its intentions to develop a for-profit nursing home at the site of Rivington House, and instead sold it to developers with plans for a luxury condominium for $116 million. The agreement also required Allure to build new health care facilities in the Lower East Side and Central Brooklyn.

In 2016, a financial consulting firm, Sabr Group, alleged in a lawsuit that Allure fell behind on a $20 million loan at its CABS Nursing Home in Bedford-Stuyvesant.

Popular Community Bank and Allure Group could not be immediately reached for comment.


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo (Getty, iStock)

Commercial eviction and foreclosure ban extended until January

Commercial eviction and foreclosure ban extended until January
The Manhattan office market’s overall vacancy rate rose to a 24-year high of 13.3% in the third quarter (iStock)

Cushman & Wakefield paints bleak picture for Manhattan office market

Cushman & Wakefield paints bleak picture for Manhattan office market
Travis Kalanick (Getty; iStock)

Travis Kalanick cooks up a real estate empire

Travis Kalanick cooks up a real estate empire
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
Gov. Andrew Cuomo announced that movie theaters in some New York counties can reopen, but NYC’s theaters are excluded for now. (Getty; iStock)

Cuomo: Movie theaters can reopen — but not in NYC

Cuomo: Movie theaters can reopen — but not in NYC
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
arrow_forward_ios

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

Loading...