AG settles with Allure Group over nursing home investigations Developer will pay a total of $2M to state and nonprofits and create two new nursing facilities
From left: Rivington House, Eric Schneiderman and Allure Group s Joel Landau (Credit: Getty Images and Allure)
Attorney General Eric Schneiderman announced Friday that he is settling with the Allure Group, a real estate developer under investigation for closing deed-restricted nursing homes in Manhattan and Brooklyn that were then converted into luxury residential properties.
The company will pay $750,000 in penalties and investigation costs to the state and pay an additional $1.25 million to Lower East Side nonprofit groups. It also requires the company to open two new nursing facilities and to fund improvements to the Greater Harlem Nursing Home.
The settlement terms released by the AG did not detail where exactly Allure will build the required Lower East Side and Central Brooklyn health care facilities, but said the sale or closure of the new buildings would be restricted for eight years.
A source familiar with the Allure Group told The Real Deal the company already had a site ready for the Lower East Side home, but did not yet have one for Central Brooklyn.
In 2015, Allure Group paid the city of New York $16 million to lift restrictions on the deed for the Rivington House nursing home so it could sell the property to investors led by condominium developer Slate爱上海同城