Allure Group Grabs $108M Refi for Brooklyn Rental Project

Joel Landau’s Allure Group snagged a refinancing for its luxury rental project in Brooklyn’s Bath Beach neighborhood.

Dwight Mortgage Trust, the real estate investment trust affiliate of Dwight Capital, provided a $108.2 million bridge loan to Allure for its project at 2230 Cropsey Avenue, the Commercial Observer reported. The proceeds are expected to refinance previous debt and go towards the completion of construction and lease-up.

The 31-story, 248-unit project is expected to open by the end of the year. It will have 29,000 square feet of retail space and residential amenities including a pool, fitness center, game room, and lounge with a sky deck.

The tower off Gravesend Bay is being developed with the 421a tax abatement, the lender said in a press release, though it’s unclear how many affordable housing units there will be in total.

Plans for the site date back nearly six years, when Allure and partner Landpex Development filed permits for The Shoreline, which can also be addressed at 2266 Cropsey Avenue and 1625 Shore Parkway. The plans called for a 243-unit, 222,000-square-foot complex, including a 26,000-square-foot community facility.

Allure acquired the property in 2015 for $30.1 million from Sephardic Home for the Aged. It landed a $55.4 million loan for the project in 2018.

It appears the developers have previously landed two other loans for the project. Dwight Capital provided a $56.3 million loan to the developers in July 2021, according to Traded, months after Bank Leumi provided $87.4 million.

The project is being built on a parking lot adjacent to the King David Center for Nursing and Rehabilitation, a long-term care facility for seniors, which is expected to remain open. Landau previously promised a $10 million investment for the facility.

Allure is arguably best known for its part in the Rivington House scandal. The firm paid a $2 million legal settlement after an investigation by the New York Attorney General’s office into the sale of the deed-restricted nursing home on the Lower East Side. The firm sold the building to Slate Property Group in 2015 for $116 million.

— Holden Walter-Warner