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

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.