The Real Deal New York

Allure closes on Harlem nursing home purchase following settlement with AG

Sale was halted in 2016 amid investigation into Rivington House scandal
By Rich Bockmann | July 05, 2018 02:10PM

The Greater Harlem Nursing Home & Rehabilitation Center and Allure Group’s Joel Landau

The Allure Group closed on its $25 million purchase of the Greater Harlem Nursing Home following a settlement with the state Attorney General’s office earlier this year.

Allure, led by Joel Landau, sealed the deal for the Greater Harlem Nursing Home & Rehabilitation Center at 30 West 138th Street on June 27, property records filed with the city Thursday show.

The company had signed the contract back in March 2014, but as Allure became embroiled in controversy over its Rivington House deal, Attorney General Eric Schneiderman’s office put the brakes on two deals the company was working on.

Property records do not indicate that Allure has closed on the other property, the Saints Joachim and Anne Nursing and Rehabilitation Center in Coney Island at 2720 Surf Avenue.

Schneiderman’s office in January announced it reached a settlement with Allure over the investigation, requiring the company to revitalize the Harlem nursing home and open new healthcare facilities in Brooklyn and on the Lower East Side.

Allure was required to pay $750,000 in penalties and $1.25 million to Lower East Side nonprofits.

In 2015, Allure paid the city $16 million to lift deed restrictions from the Rivington House so it could sell the property to investors led by Slate Property Group. The AG’s office investigated, and found that Allure “did not operate in compliance with the New York Not-For-Profit Corporation Law.”

Schneiderman, meanwhile resigned from office in May amid allegations that he had physically and emotionally abused romantic partners.