The Allure Group – $48.4M Refi for Crown Heights Nursing Home

No Mr. Landau – No picture of you here!

rivington house

Firm tied to Rivington House scandal scores $48M refi in Crown Heights

The Allure Group just landed a $48.4 million loan to refinance a Crown Heights nursing home.

Maryland-based Andrews Federal Credit Union provided a new loan of $13.4 million, which is being consolidated with $36 million in previous debt, records filed with the city’s Department of Finance on Thursday show. The remaining principal on the previous loan is $34.9 million.

Allure purchased the facility at 810 St. Marks Avenue — known as the Crown Heights Center for Nursing and Rehabilitation Center — in 2014 for $13 million.

Representatives for Allure declined to comment on the refinancing.

Allure, which is led by Joel Landau and specializes in nursing homes, was at the center of the Rivington House controversy. The company purchased 45 Rivington Street in 2015 for $28 million. After succeeding in getting a deed restriction on the property lifted, the company sold the nursing home to Slate Property Group for a $72 million profit. Last year, the city admitted that it didn’t have a legal case against Allure for flipping the property.

Earlier this month, Allure prevailed over a lawsuit filed by residents of CABS Nursing Home in Bedford-Stuyvesant. CABS filed a lawsuit against Allure last year, claiming the company forced out residents soon after buying the facility in 2015. The lawsuit was dismissed Oct. 4, though the nursing home has filed a notice of appeal.

See THE REAL DEAL.

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Another Effort to Sell a Nursing Home to Allure, Joel Landau and Their Partners: Profit Before Care – Please AG PROTECT OUR MOST VULNERABLE

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Another Attempted Nursing Home Purchase by Allure – Whose Pockets Will be Lined and How can the Public Help?

The below-referenced case is being heard. The Greater Nursing Home owners are attempting to sell the facility to the Allure Group cast of characters: Joel Landau (not photo attached, of cours), and the Rubin(s). The AG is attempting to prevent the sale. It’s calendared for  8/15/17 per the alert below.

 

Oral arguments will be heard at that time. Frank Carone (disinterest? – NO) (partner of Brooklyn Democrat Boss Seddio and Mayor deBlasio’s L.I fundraiser) Howard Fensterman  – the lawyer attempting to facilitate the hand-over of yet another facility to predatory owners (you’ve seen his name before).

With all of the money that incestuously changes hands among this cast of characters it’s a wonder why they don’t just all share the same bank account and be done with it.

 

Being clear, it is yet another effort facilitated by the co-opted NY State DOH and its Public Health & Health Planning Council  (think Rivington House) to  sit back and lets these corporate takeovers happen. This cast of characters is a group of morally challenged individuals who make millions of dollars off the backs of elderly and infirmed patients.

Where is the San Francisco Bee when you need it? 

 

Index Number: 155305/2016
The following case which you have subscribed to in eTrack has been updated. Changes from the last update are shown in red and are annotated.

Court: New York Civil Supreme
Index Number: 155305/2016
Case Name: GREATER HARLEM NURSING vs. X
Case Type: E-Other Special Proceedings
Track: Standard
Upstate RJI Number: 
Disposition Date: 
Date NOI Due: 
NOI Filed: 
Calendar Number: 
RJI Filed: 06/28/2016
Jury Status: 
Justice Name: KOTLER, LYNN R.

Attorney/Firm for Plaintiff: 
ABRAMS FENSTERMAN FENSTERMAN/
3 DAKOTA DR, STE 300 
LAKE SUCCESS, NY 11042
Attorney Type: Attorney Of Record
Status: Active

Last Appearance:
Appearance Date: 07/12/2017 — Information updated
Appearance Time: 
On For: Supreme Trial — Information updated
Appearance Outcome: Remove Stay — Information updated
Justice: KOTLER, LYNN R. — Information updated
Part: STATUS CONFERENCE 8 — Information updated
Comments: 

Future Appearances: — Information updated
Appearance Date: 08/15/2017 — Information updated
Appearance Time: — Information updated
On For: Motion — Information updated
Appearance Outcome: — Information updated
Justice: KOTLER, LYNN R. — Information updated
Part: IAS MOTION 8EFM — Information updated
Comments: 10AM — Information updated
ORAL ARGUMENT — Information updated
Appearance Date: 08/15/2017 — Information updated
Appearance Time: — Information updated
On For: Motion — Information updated
Appearance Outcome: — Information updated
Justice: KOTLER, LYNN R. — Information updated
Part: IAS MOTION 8EFM — Information updated
Comments: 10AM — Information updated
ORAL ARGUMENT — Information updated

Older appearances may exist but are not shown.

Motions: Motion Number: 2
Date Filed: 07/26/2016
Filed By: PLAINT
Relief Sought: Leave To Intervene
Submit Date: — Information updated
Answer Demanded: No
Status: Open: 

Before Justice: KOTLER
Decision: 
Order Signed Date: 

Motion Number: 1
Date Filed: 
Filed By: 
Relief Sought: Other Reliefs
Submit Date: 
Answer Demanded: No
Status: Open: 

Before Justice: KOTLER
Decision: 
Order Signed Date: 

Scanned Decisions: None on file.

To access this case directly click here.
This is an automated e-mail. If you have questions about your case please contact the Court directly.

Joel Landau – Have You no Shame? An Allure of Disgust – but no photo of your face!

 

allure without landau

THE REAL DEAL

Allure demands lender pay $40M for Brooklyn nursing home

Joel Landau’s firm and Sabre Group are fighting over terms of loan default

March 06, 2017 01:40PM
By Kathryn Brenzel

The Allure Group fired back against a lawsuit filed by its lender on a Brooklyn nursing home, claiming that the financial firm should pay $40 million for the property.

 

Allure, headed by Joel Landau, claims that the Sabre Group must pay $40 million for 270 Nostrand Avenue and an additional $6 million because the sale of the property didn’t close on time, according to documents filed in state Supreme Court. Allure, one of the developers at the center of the Rivington House scandal, maintains that “the express and unambiguous provisions” of the mortgage it received from Sabre require the Midtown firm to pay $40 million for the property.

A spokesperson for Sabre would only say that Allure has “been in default for quite some time and that’s why we’re pursuing our claims.”

Sabre sued Allure in December, accusing the company of failing to repay a $20 million loan it provided to acquire the Brooklyn nursing home. Allure purchased CABS Nursing Home in Bedford-Stuyvesant in 2015 for $15.5 million. Sabre claims that, under the terms of the mortgage, it can purchase the nursing home for $25 million because Allure defaulted.

But Allure alleges that because the property was vacant and had no pending litigation at the time that Sabr tried to act on its purchase right, the lender is on the hook for higher purchasing price. The landlord also claims that a liquidated damages provision in the mortgage requires Sabr to put $6 million toward the outstanding balance on its loan, since the financial firm failed to acquire the property after Allure repeatedly scheduled closing dates.

Landau declined to comment.

In December, the city admitted that it did not have a legal case against Allure, despite Mayor Bill de Blasio’s promise to sue the company for flipping 45 Rivington Street. Allure made $72 million when it sold the property to Slate Property Group. In April, New York state Attorney General Eric Schneiderman issued subpoenas after Allure filed demolition plans for the Nostrand property, with the intention of replacing it with a seven-story, 241-unit rental building.

The nursing home filed a lawsuit against Allure in December claiming the company marketed itself as a nursing home business while bidding for the property and instead forced residents out. The lawsuit also notes that the property flip may have led to the deaths of a few nursing home residents, who they say were forced out.

Joel Landau – Allure Group – Shameless Behavior – if What is Claimed is Right

 

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BK nursing home blames Allure Group for resident deaths

http://therealdeal.com/2016/12/22/brooklyn-nursing-home-blames-allure-group-for-death-of-certain-residents/

A Brooklyn nursing home is blaming the Allure Group for the deaths of some of its residents, saying the landlord wrongly forced the residents out.

CABS Nursing Home in Bedford-Stuyvesant filed a lawsuit against Allure, claiming the company forced out residents soon after buying the facility in 2015, the New York Post reported. Allure’s efforts to quickly flip the property, the lawsuit alleges, led to the untimely deaths of some of CABS’ residents. The nursing home also claims that it turned down higher bids for the property because Allure, led by Joel Landau, billed itself as a company with nursing home experience.

An attorney for Allure fired back that the company never agreed “to operate a nursing home for any period of time, much less forever.”

Earlier this month, Allure was hit with another lawsuit related to CABS. Sabr Group claimed that Allure repeatedly fell behind on a $20 million loan and was trying to force the lender to buy the property at a 60 percent markup from an earlier price.

In April, New York state Attorney General Eric Schneiderman issued subpoenas after Allure filed demolition plans for the nursing home, with the intention of replacing it with a seven-story, 241-unit rental building.

Allure is also at the center of the Rivington House scandal. The company negotiated to have the deed restriction removed from the Lower East Side property, paving the way for the sale of the nursing home to Slate Property Group and several partners. [NYP]Kathryn Brenzel 

Joel Landau -The Allure of Escaping Millions Richer – Sorry… No Pictures Please

rivington house

Dear Reader:

Joel Landau, through a series of demands and other bullying tactics sent in the form of threatening letters from Wordpress, claimed an array of Copyright violations. The poor little man did not like having his face on our pages. So he had his pictures forcibly removed from our pages and our archives with threat of shutting us down for Copyright Violations. While that makes us kinda want to put a Metadata link to his name and Allure Group on every single one of our pages, so that he and Allure will forever be synonymous with every ill, morally bankrupt and skewed activity referenced on these pages (particularly where healthcare facilities are concerned), we figured that would simply be unproductive. Instead, we are going to publish every article about Landau and Allure. We will publish every piece of information available. Just send it over. We hope that one day someone, more clever than him and his band of merry loophole-finders, figures out a way to make him pay for his reprehensible though remarkably clever behavior. He is another person who manipulates the lives of our most vulnerable citizens for ill-gotten gains. To Joel Landau and Shlomo Rechnitz – L’chaim…

http://therealdeal.com/2016/12/30/city-admits-it-doesnt-have-a-legal-case-against-allure-group-over-rivington-house/

City admits it doesn’t have a legal case against Allure Group over Rivington House

Mayor said law department can’t find “pathway” to seeking restitution from Joel Landau’s firm

The city’s hands may be tied when it comes to seeking restitution for the controversial sale of a Manhattan nursing home to a luxury condo developer.

Mayor Bill de Blasio, who in April vowed to sue Allure Group for flipping the property at 45 Rivington Street, said Thursday that the city’s lawyers “cannot find an actual pathway” to restitution.

“I support anything that would get us further restitution for what happened,” the mayor said at a press conference, Politico reported. “I made very clear my anger at the way the private-sector firm handled things,” he said. However, “So far, our law department cannot find an actual pathway.”

Allure made $72 million when it sold 45 Rivington to Slate Property Group, after convincing the city to lift a deed restriction on the site. The de Blasio administration maintained that Allure did not tell the city it intended to sell the building to a developer while negotiations were taking place. But a report from the Department of Investigations found that reps for Allure told the city in March 2015 that if the deed weren’t lifted, it would consider a conversion of the property to luxury apartments.

Comptroller Scott Stringer also accused Allure of misleading City Hall, but mostly faulted the de Blasio administration for mishandling information at virtually every turn. Allure maintains it did nothing wrong.

The mayor has insisted he was not aware of the deal.

Allure, led by Joel Launda, has maintained it did not lie to the city, but earlier this month, the mayor signed a bill to increase oversight of deed restrictions.

Meanwhile, the city hired two law firms this year to represent it in the Rivington deal, and in campaign finance investigations. The contracts are for more than $10 million, Politico reported. [Politico]E.B. Solomont

AG Schneiderman – The Allure of a Photo-Op or Do you Actually Care about the Elderly???

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Have Restrictions Really Been Tightened? Has Anything Changed? Nope…

In June, shortly after the Allure scandal, Attorney General Schneiderman was calling the group unscrupulous, openly stating that tighter restrictions were required so that the laws could not be so easily circumvented.

But the crux of his speeches were irrespective of the health and safety of the sick and elderly who are misplaced by Nursing Home operators looking to syphon an additional buck.

If one scours the news today, it is difficult to find anything that Schneiderman has either done or said on the subject since June. One must wonder whether his words were simple lip service and his photos scattered along the internet as campaign slogans. Allure cost New York City millions. But what got missed were the lives of the patients who had once graced the halls of Rivington. Rivington was not at the time, nor is it now in our view and exception. It was and continues to be the rule.

Schneiderman blocks sale of two nursing homes to Allure Group

June 2016 – Politico

The Allure Group, a nursing home operator that sold Rivington House on the Lower East Side to a condo developer earlier this year, is being blocked from two other property transactions by state Attorney General Eric Schneiderman, who says the company misled government officials.

Schneiderman’s office is halting the sale of the nonprofit Greater Harlem Nursing Home & Rehabilitation Center and the Sts. Joachim and Anne Nursing and Rehabilitation Center to Allure, which paid the de Blasio administration $16 million last fall to remove any restrictions on the use of Rivington House. That action allowed the former nonprofit AIDS residence to be sold to Slate Property Group for $116 million — a move that is under investigation and has become a blemish on the mayor’s record.

In letters to the nursing homes’ attorneys, provided to POLITICO New York, Schneiderman’s Charities Bureau lays out its concerns with Allure.

“Joel Landau (principal at Allure) made misrepresentations to the Department of Health that New Rivington would continue to operate a nursing facility at the site,” reads the four-page letter, signed by Sean Courtney, enforcement section chief at the Charities Bureau.

The letter goes on to say that the 45 Rivington St. facility is currently empty as Slate prepares for construction.

“The not-for-profit Rivington House entity, which the Allure Group came to control in 2015, did not, as was required under the Not-For-Profit Corporation Law, either seek to dissolve or to obtain approval for disposing of its nursing home operations at 45 Rivington Street,” it states.

Read more: http://www.politico.com/states/new-york/city-

Follow us: @politico on Twitter | Politico on Facebook

 

joel-landau-45-rivington-street

Attorney General Seeks To Block Sale Of Coney Island Nursing Home To Scandalized Operator

June 2016

The New York attorney general’s office is trying to block the sale of a Coney Island nursing home, and another facility in Harlem, to a company at the center of a real estate scandal related to nursing center on the Lower East Side.

The Allure Group, whose sale of the Rivington House nursing center in February prompted investigations by three different agencies, wants to purchase the Saints Joachim and Anne Nursing and Rehabilitation Center in Coney Island, as well as the Greater Harlem Nursing Home & Rehabilitation Center, the New York Times reports.

Attorney General Eric Schneiderman’s office reportedly sent letters informing both centers he would not support “any proposed sales of not-for-profit organizations, in particular nursing homes, to the Allure Group.”

The Attorney General’s office reviews the sale of assets by a non-profit in New York. The organizations must then get court approval.

The Allure Group, a nursing home operator, is under investigation by the attorney general, the New York City comptroller and the city’s Investigation Department over its $116 million dollar sale of the Rivington House to a developer. Allure group had pledged to keep the facility open as a health center for at least two years when it paid $16 million for the city to drop deed restrictions on the property, according to the Times.

The attorney general’s office also alleges Allure Group purchased another nursing home in Bedford-Stuyvesant last year and closed it months later with plans to demolish the building, the Times reports.

“Allure made clear and repeated promises to continue the operation of two nursing homes for the benefit of a vulnerable population — promises that proved to be false,” and attorney general spokesman told the Times. “Until we conclude our investigation, we will object to Allure buying additional nursing homes.”

A lawyer for Allure denied the company had misled officials.

Some content on this page was disabled on October 13, 2016 as a result of a DMCA takedown notice from David Rosenberg. You can learn more about the DMCA here:

https://en.support.wordpress.com/copyright-and-the-dmca/

Slate should not be allowed to go forward with the city-backed Brooklyn project

rivington house

 

City should not have awarded housing deal to buyer of former nursing home, local groups say

Slate Property Group, which will convert the Rivington House nursing home into condos, was picked to develop the Bedford-Union Armory in Crown Heights

https://mail.google.com/mail/u/0/#inbox/1566aa5acdc1d5c8

A developer that conspired to dupe city officials about plans for a former nursing home should not be handed the reins on a massive residential project on city-owned land, outraged community groups say.

A month after the de Blasio administration lifted the now-famous deed restriction at the former Rivington House nursing home on the Lower East Side, which led to the sale of the building to Slate Property Group for use as luxury condos, the city awarded a large and lucrative city-backed housing deal in Crown Heights to the developer.

While vying for the job of redeveloping the 500,000-square-foot Bedford-Union Armory, Slate was simultaneously trying to keep its May 2015 agreement to buy Rivington House a secret from city officials out of concern they would halt the deal, according to a Department of Investigation report released last month.

Local groups now argue that Slate should not be allowed to go forward with the city-backed Brooklyn project. New York Communities for Change, the Crown Heights Tenant Union, affordable-housing nonprofit the Urban Homesteading Assistance Board, residents’ group the Crown Heights Community Council and unions DC-9 and Local 79 plan to protest the plans Wednesday outside the sprawling former military complex, which will be converted into an apartment building, townhouses and a recreational facility. Slate has partnered with developer Donald Capoccia, who is a donor to Mayor Bill de Blasio, and nonprofit group CAMBA on the redevelopment project.

“It’s clear that they cannot be trusted,” said NYCC spokeswoman Renata Pumarol of Slate principals David Schwartz and Martin Nussbaum. “I think the city already knows this because of the Rivington deal. We should not trust Slate with the Armory or any developments moving forward because it’s clear they don’t have the best interests of the residents of New York City.”

Pumarol cited another instance where Slate agreed to build affordable apartments in Ridgewood, Queens, in exchange for a zoning change and then flipped the building, which sold for $18.5 million. Her group released a report detailing their objections to Slate, part of a “Real Gentrifiers” campaign against for-profit affordable housing developers.

Slate did not respond to a request for comment.

Slate and Capoccia’s BFC won a 99-year lease on the city-owned property between Union Street and President Street along Bedford Avenue. Half of the 330 apartments in a planned rental building will have set affordable rents, according to EDC, and half market-rate. The city also sold the developers part of the land along President Street upon which they plan to build market-rate townhouse condos. Much of the space will be devoted to a sports facility funded by basketball star Carmelo Anthony.

The project proposal has yet to go through the city’s land-use approval process.

The city’s Economic Development Corp. stood by the project plans in a statement. “The Bedford Courts development team was selected through an open and competitive process because they offered the highest quality proposal, and the one that best met the needs and priorities outlined by community leaders,” spokesman Anthony Hogrebe said. “EDC was not aware of any details of the Rivington sale prior to our selection. We look forward to bringing much needed affordable housing, community space, and good jobs to Crown Heights.”

The project has garnered support from local elected officials and community leaders, EDC said.

A spokesman for the mayor’s office said senior City Hall officials knew nothing of Slate’s involvement in the Rivington House deal until February 2016, when the deal was made public and two months after the EDC announced it had selected the company for the Armory project.

Deputy Mayor Alicia Glen, who oversees the EDC, had pushed to try and use Rivington House for affordable housing as early as 2014, Politico reported, but was told the site would remain a nursing home.

In May 2015, Slate signed a contract with Allure to buy Rivington House, city investigations found. Allure’s principal Joel Landau encouraged Slate to keep mum on the deed change and sale, according to an investigative report from comptroller Scott Stringer.

“After striking a deal to sell Rivington House, Mr. Landau urged the buyers not to discuss the transaction in public so as not to tip off the stakeholders to his plans,” Stringer wrote in the report. “One of Mr. Landau’s attorneys went so far as to advise that the buyers should ‘KEEP THEIR MOUTHS SHUT. The deal is all over the street from their investors and it could F!@# up the deed restriction being lifted [and] union if they know sales price.'”

And Slate in turn directed its employees to keep the sale a secret, the DOI found in its report on the deal. 

“On May 14, 2015, a Slate representative told its employees: ‘[D]o not discuss this deal … the seller [Allure] is very concerned that the city and union will find out that he is in contract to sell at the price that we are buying it which will directly impact his ability to have the deed restriction removed. Once he has it removed we can do whatever we want,'” the DOI report said.

Slate managed to keep the secret from city officials, according to the mayor’s office, and the deed restriction lift went off without a hitch in November 2015. Starting on Dec. 1, Lower East Side residents expressed concern to City Hall’s Community Affairs Unit about Allure Group’s plans to sell the nursing home to City Hall, according to Stringer, and informed them that a construction firm working with the buyer expected the property to be converted to market-rate housing. The information was shared with senior officials throughout City Hall, according to Stringer’s report.Local residents had spotted Slate architects walking around Rivington, DOI found.

But a spokesman for the mayor’s office maintained that senior City Hall officials were not aware “of even any sort of rumblings about a flip” until 2016. It was not until February that Glen’s staff scrambled to try and undo Allure’s Rivington House sale, to no avail, and even then they did not know Slate was involved, he said.

The groups protesting the Crown Heights project also argue that Slate is not planning enough affordable housing for the armory site. Of the 330 apartments it will build, 66 will be reserved for those making 40% and 50% below the area median income, while 164 will be market-rate. The rest, 99 units, will be for those earning 110% of the area median income—which is not the median income for Crown Heights but for the entire city and some suburban counties.

The 66 low-income affordable apartments are on par with the median income of Crown Heights, a spokesman for BFC noted.

But most of the units are not “in sync with the neighborhood AMI,” said Pumarol, who argued that the project’s current breakdown will exacerbate gentrification in the neighborhood instead of helping to mitigate the displacement of local residents.

To read the article in its entirety click here.