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Brooklyn ,NY - Firm Protests Innocence As de Blasio Distances Himself From Deal

Published on: April 5, 2016 03:17 PM
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Joel Landau an Allure executive via his Twitter account and 45 Rivington Street on the Lower East SideJoel Landau an Allure executive via his Twitter account and 45 Rivington Street on the Lower East Side

Brooklyn, NY - Several days after allegations surfaced questioning the propriety of a real estate deal, the company at the center of the investigation has made its first public comment.

As previously reported on VIN News, Mayor de Blasio criticized members of his administration for agreeing to lift usage restrictions on a building that allowed the Brooklyn based Allure Group, a for profit nursing home operator, to sell the property to developers that plan to convert the former nursing home into luxury condominiums.

Allure purchased the property known as Rivington House in 2015 for $28 million, according to the Wall Street Journal.  At the time of purchase, restrictions on the deed limited the use of the Lower East Side property to a non-profit residential health care facility.

Joel Landau, an Allure executive, wrote in an email that the property would be maintained as a nursing home.

A statement released last night by Marvin Rubin, a partner at Allure, cited the company’s long history of converting failing non-profit nursing homes into successful, for-profit facilities.

“We tried to make Rivington House viable as a for-profit skilled nursing facility,” said Rubin.  “When it became clear that this was not possible, we followed all proper protocols and sold the building.”

Allure paid the city’s Department of Citywide Administration Services $16 million last November to lift the usage restrictions on the property, located at 45 Rivington Street, as reported by Capital New York.  Within three months, Allure resold the property to Slate Property Group for $116 million, netting a $72 million profit.

Officials at DCAS said that Allure intentionally misled them in a late 2014 email that stated that the home would be “kept as it is.”  A later request for a change in deed made in a 2015 email, made no mention of keeping the property as a skilled nursing facility.  For its part, Allure insisted that the change in its plans for the building reflected nothing more than the realization that the property could not be used for its intended purpose.

A spokesperson for de Blasio said that no one at City Hall had ever been informed of the change to the deed restrictions at Rivington House.

de Blasio has said that the city may sue Allure and was insistent that had he been made aware of the request for change, he would have been firm in his denial.

“If they had asked me I would’ve said, ‘don’t do it.’” said de Blasio.

“Someone should have said no farther down the food chain and if they didn’t know how they should’ve come to me and I would’ve said no very quickly,” added the mayor.

Just eight deed restrictions that removed a property’s non-profit status have been approved by the city over the past two years, and in all of those cases, the fee paid was significantly less than the amount paid by Allure.  The Dance Theater of Harlem paid $875,000 in 2015 to lift restrictions on a vacant piece of land and a Crown Heights yeshiva paid $150,000 in November, 2015 to have restrictions removed from a piece of property.  In a third instance, the family of a Scarsdale doctor paid the city $900,000 in 2015 to have restrictions removed from a parcel of vacant, non-residential land on the Upper East Side.


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Read Comments (38)  —  Post Yours »

1

 Apr 05, 2016 at 03:24 PM Butterfly Says:

Where did the people in the nursing home end up??

2

 Apr 05, 2016 at 03:33 PM kenyaninwhitehouse Says:

de bozo will throw everyone under the bus but still keep HIS fee of $50,000 which is how much Capalino gave him to get this done. Someone needs to be arrested or at the minimum fired.

3

 Apr 05, 2016 at 03:46 PM bennyt Says:

This is starting to smell worse than old shmaltz herring.

4

 Apr 05, 2016 at 03:37 PM Naftali Mosser Says:

Does this also have nothig to do with the conversation?

But no we can make a parnasa without an education. How many hieimisha were on the news for scandals or unethical business practices over the past week alone? (If I am couting correctly at-least 5.)
How many of those were college educated jobs?
This is not to say that college educated never steal. But its much less frequent. And frankly the necessity is much less. If you can earn a straight honest salaried living the need to do shmai dreis is much less.

This is very well connected to education. The need in the hiemesh community to do these tricks are because we can't earn normal salaried livings.

5

 Apr 05, 2016 at 03:58 PM Modern Orthodox Says:

Really seems as though there was no crime. He tried to get the building cheap and then get the rule changed and he succeeded. Please don't forget that he did pay about 15 million dollars to NYC that NYC demanded to remove the restriction.
Maybe he bent the truth a bit but he was not under oath and has the right to change his mind.
The NYC employee that did not ask for more money was a fool probably was not aware of how valuable the property would become.
I am sure the patients were appropriately transferred, there are rules about how that is done.

6

 Apr 05, 2016 at 04:04 PM kenyaninwhitehouse Says:

Reply to #1  
Butterfly Says:

Where did the people in the nursing home end up??

in homeless shelters, there was an article in city and state today saying that.

7

 Apr 05, 2016 at 04:19 PM heyward Says:

Greed. Greed....At what point are they going to learn to walk a straight line. Just make sure that they Daven very loud and haler. SHABBOS SHABBOS

8

 Apr 05, 2016 at 04:47 PM ItzikGold Says:

Anyone that draws a conclusion based solely on the information in this article, that these Jews are guilty, is an anti-Semite. Yes, you can be an anti-Semite and be Jewish at the same time, it is called self hating.

9

 Apr 05, 2016 at 05:39 PM shvigger Says:

Why does it cost millions of dollars to lift restrictions on property?

10

 Apr 05, 2016 at 05:50 PM Anonymous Says:

Reply to #6  
kenyaninwhitehouse Says:

in homeless shelters, there was an article in city and state today saying that.

That is not what the article says, nor is that what is going to happen.

The article said nothing about the residents at Rivington House being sent to the homeless shelters..

Further, the Department of Health will have a plan filed for them for transferring residents.

11

 Apr 05, 2016 at 05:54 PM Anonymous Says:

Reply to #6  
kenyaninwhitehouse Says:

in homeless shelters, there was an article in city and state today saying that.

What an interesting scandal. They paid $16,000,000 to the city. Does that sound like they did something wrong?

Sounds like the should sue the city and DiBlasio for sullying their name after charging them $16,000,000 for the right to do what they did.

12

 Apr 05, 2016 at 05:58 PM M O Says:

Reply to #7  
heyward Says:

Greed. Greed....At what point are they going to learn to walk a straight line. Just make sure that they Daven very loud and haler. SHABBOS SHABBOS

As I wrote in the previous post I don't think they broke any laws and didn't do anything that most people would not do it's almost like going in the store asking for the price and saying that's a good price I'll take ten of them.
Remember NYC did demand a payment of around 15 million dollars before they remove the Restriction so it's not like they pulled such a fast one.
Based on the above I think those comments that refer to people davening louder or hollering or yelling Shabbos are totally off-base this time

13

 Apr 05, 2016 at 06:02 PM Anonymous Says:

Reply to #6  
kenyaninwhitehouse Says:

in homeless shelters, there was an article in city and state today saying that.

So the City charged $16,000,000 to do what? They could not check their records to see if there were any restrictions on the property? What did the city do to warrant the $16,000,000 then?

And now there will be a huge amount of new real estate tax dollars.

14

 Apr 05, 2016 at 06:59 PM Anonymous Says:

Interesting how the heimishe people that were implicated in scandalS revealed in the last week or so were all debozo's "transition team". Sounds fishy to me.....

15

 Apr 05, 2016 at 07:09 PM shvigger Says:

Why must it cost millions to lift restrictions on properties. No wonder the real estate market is so messed up. Exactly what crime did Allure commit? Seems like he made the right moves to get exactly where he wanted.

16

 Apr 05, 2016 at 07:10 PM Maven Says:

To those who claim that frum people who become crooks and criminals reason being becuase they lack secular education are talking non-sense.

These supposed educated folks are seeking to force their twisted agenda on the entire frum community. We must unmask their true colors.

Millions and Billions of dollars are stolen by highly elite graduated people. The news is full on a daily basis how these folks in banking and Wall street are scheming the system. A crook is a crook no matter if he is educated or not.

The facts and statistic are that all over the world wherever there is poverty and no education people kill each others and the prison are full of these kind of people.
Probably not ONE uneducated frum person is in prison becuase of murder.

17

 Apr 05, 2016 at 07:55 PM savtat Says:

Real estate laws in NYC can be very convoluted. The idea that you can pay to have a restriction removed is rife with possible fraud. Making a lot of money on a deal is not against the law, but when it seems to come at the expense of a nursing home population, it seems really callous. Honestly, I don't see where it has anything to do with college or an education. Certainly the mayor is college educated.

18

 Apr 05, 2016 at 08:17 PM Esther Says:

Reply to #4  
Naftali Mosser Says:

Does this also have nothig to do with the conversation?

But no we can make a parnasa without an education. How many hieimisha were on the news for scandals or unethical business practices over the past week alone? (If I am couting correctly at-least 5.)
How many of those were college educated jobs?
This is not to say that college educated never steal. But its much less frequent. And frankly the necessity is much less. If you can earn a straight honest salaried living the need to do shmai dreis is much less.

This is very well connected to education. The need in the hiemesh community to do these tricks are because we can't earn normal salaried livings.

Please,this has nothing to do with not going to college. Greed is greed.

19

 Apr 05, 2016 at 08:37 PM Liepa Says:

Hey, whats the problem here, Allure paid DCAS 16 million and that's the end oif it.
If Allure then turned around and sold it for 116 million, that's their luck!

Good for them !

20

 Apr 05, 2016 at 09:01 PM bubble Says:

no one made a boo when the nursing home was turned condo in grand army plaza, throwing a old over 90 year old holocaust survivor out to pasture.where was the outrage then

21

 Apr 05, 2016 at 11:01 PM jason Says:

Reply to #8  
ItzikGold Says:

Anyone that draws a conclusion based solely on the information in this article, that these Jews are guilty, is an anti-Semite. Yes, you can be an anti-Semite and be Jewish at the same time, it is called self hating.

What if I happened to read the article not knowing the people were Jewish and presumed they were guilty does this also make one a self hating anti semite? If they were Chinese does this make me a non-self hating chineese person. Your small minded ghetto attitude makes me sick.

22

 Apr 05, 2016 at 11:03 PM Micka Says:

Reply to #4  
Naftali Mosser Says:

Does this also have nothig to do with the conversation?

But no we can make a parnasa without an education. How many hieimisha were on the news for scandals or unethical business practices over the past week alone? (If I am couting correctly at-least 5.)
How many of those were college educated jobs?
This is not to say that college educated never steal. But its much less frequent. And frankly the necessity is much less. If you can earn a straight honest salaried living the need to do shmai dreis is much less.

This is very well connected to education. The need in the hiemesh community to do these tricks are because we can't earn normal salaried livings.

Go find a different altruistic cause, how about saving baby pandas in China. Just please leave us alone to manage and improve our education on our own terms, will and pace. Thanks

23

 Apr 06, 2016 at 12:02 AM aleph Says:

Even the city doesn't claim that they promised to keep the current nursing home residents. If I recall correctly it houses mainly AIDS patients, and because of dwindling residents the existing nursing home wanted out. Allure came and supposedly said we'll make A NEW FOR PROFIT NURSING HOME (which they have plenty of experience with). After paying 16 million to lift the restrictions, they changed their plans. The city messed up by not requesting a written agreement, or someone got kick-backs.

So what if they made few hundred million and the city only made 16 mil? It wasn't city owned property.

The NYC real estate market is a crazy one, and only a fool doesn't try to beat the city at their own greedy game. Except that those fools don't remain in the business for long...

24

 Apr 06, 2016 at 08:49 AM NO, Bubble Says:

Reply to #20  
bubble Says:

no one made a boo when the nursing home was turned condo in grand army plaza, throwing a old over 90 year old holocaust survivor out to pasture.where was the outrage then

Well, bubble, the facts are different here.
1, There is a frum yid involved so it is more newsworthy.
2, This was a nursing home which is more regulated. The home at Grand Army Plaza was a less regulated senior Assisted Living.

It should be noted that despite all the news NYS has had nothing to say, probably because he did everything correctly and did not break any laws or regulations.

To those fools that are so worried about the former residents; you and I should have such ironclad protection. Residents mostly move voluntarily to a facility that might be nicer or closer to family. I believe that the nursing home must stay open and maintain sufficient staff as long as there is one patient left. Closing a nursing home takes about 6 months and entails losses.

25

 Apr 06, 2016 at 10:10 AM Anonymous Says:

Reply to #19  
Liepa Says:

Hey, whats the problem here, Allure paid DCAS 16 million and that's the end oif it.
If Allure then turned around and sold it for 116 million, that's their luck!

Good for them !

How many comments are written by Allure Group Public Relations Company? The replies are very obvious over here.

26

 Apr 06, 2016 at 11:21 AM Naftali Mosser Says:

Reply to #16  
Maven Says:

To those who claim that frum people who become crooks and criminals reason being becuase they lack secular education are talking non-sense.

These supposed educated folks are seeking to force their twisted agenda on the entire frum community. We must unmask their true colors.

Millions and Billions of dollars are stolen by highly elite graduated people. The news is full on a daily basis how these folks in banking and Wall street are scheming the system. A crook is a crook no matter if he is educated or not.

The facts and statistic are that all over the world wherever there is poverty and no education people kill each others and the prison are full of these kind of people.
Probably not ONE uneducated frum person is in prison becuase of murder.

Wrong you are talking nonsense.

Like I said of course educated people can and do steal. But the necessity is not as present as when one does not have a degree. Someone who is an accountant from 9-5 or 9-10 at night and makes his meager salary based on his education does not have to live a life thinking how can I make a parnasa by fooling the silly goy. Because all goyim are silly and only unz hiemisha are smart.

Facts are, read the hiemisha scandals over the past week alone. I think they were five listed scandals. Or some don't call this a scandal. So lets call this flirting with the law. Either way five of these kind of stories were listed over the past week and not one of these guys were educated.

27

 Apr 06, 2016 at 11:27 AM Mosser Says:

Reply to #22  
Micka Says:

Go find a different altruistic cause, how about saving baby pandas in China. Just please leave us alone to manage and improve our education on our own terms, will and pace. Thanks

You will never improve education on your own terms. That will never happen.

28

 Apr 06, 2016 at 11:41 AM Chaim Says:

The city may have messed up by completely lifting the restriction instead of just modifying it so it remains a nursing home.
If the property decreased in value after the restriction was lifted (due to a market crash etc,) the city would've never refunded the 16 mil.

I'm happy for Landau.

29

 Apr 06, 2016 at 11:25 AM Mosser Says:

Reply to #18  
Esther Says:

Please,this has nothing to do with not going to college. Greed is greed.

Of course greed is greed. But its the non college educated amoungst us who are forced to earn livings via non conventional methods. They have no choice but to live a life trying to think how can I outsmart the goy. Anyone can steal but the necessity is not as present when yo can earn a living in normal salaried professional manner.

This is why the gemara says to teach your child an אומנות. (A job skill) Because if not they become robbers. But hey greed is greed so whats the difference? The answer is you have to take away the necessity to trick and steal.

30

 Apr 06, 2016 at 11:46 AM M O Says:

Reply to #25  
Anonymous Says:

How many comments are written by Allure Group Public Relations Company? The replies are very obvious over here.

I wrote the comments as mOas well as modern Orthodox and as a reply to Bubbles and in each case I said what I felt.
I am not a spokesman nor an employee nor am I even employed or in any way known to the Allure group. That should be responded to because I wouldn't like it to happen to me you wouldn't like it to happen to you and it can happen to anybody

31

 Apr 06, 2016 at 02:12 PM The_Truth Says:

I am still at a loss to what they did wrong. Just because some people don't like what they do, doesn't mean they did anything wrong - based on what I am reading here. They are Jews - they did a great business deal and made money. Cliche? Yes. Wrong? No.
This article is definitely missing in content and there is more to the story not being reported here. Lets wait for a court to decide if the guy is guilty of anything before accusing him of anything.

32

 Apr 06, 2016 at 02:35 PM Anonymous Says:

Reply to #29  
Mosser Says:

Of course greed is greed. But its the non college educated amoungst us who are forced to earn livings via non conventional methods. They have no choice but to live a life trying to think how can I outsmart the goy. Anyone can steal but the necessity is not as present when yo can earn a living in normal salaried professional manner.

This is why the gemara says to teach your child an אומנות. (A job skill) Because if not they become robbers. But hey greed is greed so whats the difference? The answer is you have to take away the necessity to trick and steal.

Naftali keep up your noble act of chased for Klal Yisrael the silent majority needs you!

All of those crooks are being justified by giving money to big Events and Dinners and their names are being honored as the biggest business genius {crooks}!

The more money you can steal and donate the bigger kuvet you will get at those events that’s one reason why people will go at great length and do illegal business deals.

33

 Apr 06, 2016 at 05:32 PM Maybe the TRUTH Says:

Reply to #31  
The_Truth Says:

I am still at a loss to what they did wrong. Just because some people don't like what they do, doesn't mean they did anything wrong - based on what I am reading here. They are Jews - they did a great business deal and made money. Cliche? Yes. Wrong? No.
This article is definitely missing in content and there is more to the story not being reported here. Lets wait for a court to decide if the guy is guilty of anything before accusing him of anything.

Sorry Mr Truth. Maybe there is no more to the story. They did a good deal. Some low lever NYC employee levied a huge payment which was still lower than their benefit. They were offered a deal and they took it. As another poster posted, had the value gone down and they lost money the City would not reimburse their fee.

34

 Apr 06, 2016 at 05:48 PM Anonymous Says:

To those that say whats wrong?

Nothing he didn't do anything illegal. But he did knowingly trick them. He knew what he was doing from day one and took them for a ride. Its the spirt of the law. The notion that I can fool and trick the government.

35

 Apr 07, 2016 at 12:01 AM accent26 Says:

Reply to #4  
Naftali Mosser Says:

Does this also have nothig to do with the conversation?

But no we can make a parnasa without an education. How many hieimisha were on the news for scandals or unethical business practices over the past week alone? (If I am couting correctly at-least 5.)
How many of those were college educated jobs?
This is not to say that college educated never steal. But its much less frequent. And frankly the necessity is much less. If you can earn a straight honest salaried living the need to do shmai dreis is much less.

This is very well connected to education. The need in the hiemesh community to do these tricks are because we can't earn normal salaried livings.

"The educated in America steal less frequent". How ignorant fro an educated guy like you.
Remember the S&L scandal, Enron & Madoff? They were responsible for over $250BB and shook up the US economy. When charedim are involved in a couple of million dollars it's all about education and being frum.

Cut it out....

36

 Apr 07, 2016 at 11:24 AM Mosser Says:

Reply to #35  
accent26 Says:

"The educated in America steal less frequent". How ignorant fro an educated guy like you.
Remember the S&L scandal, Enron & Madoff? They were responsible for over $250BB and shook up the US economy. When charedim are involved in a couple of million dollars it's all about education and being frum.

Cut it out....

You are confusing frequency with severity. You picked two very severe instances. But the frequency of stealers amoungthe educated is far less. And let me remind you of the gemara that says that one must teach his children a profession and if not he is teaching them to be ganavim.

Like I said educated people steal too. But its not the same necessity since they can obtain normal salaried jobs.

37

 Apr 07, 2016 at 01:32 PM Reply to Mosser Says:

Reply to #36  
Mosser Says:

You are confusing frequency with severity. You picked two very severe instances. But the frequency of stealers amoungthe educated is far less. And let me remind you of the gemara that says that one must teach his children a profession and if not he is teaching them to be ganavim.

Like I said educated people steal too. But its not the same necessity since they can obtain normal salaried jobs.

Stealing is wrong. There is no room to discuss frequency or severity. It is an individual decision and there is also no room to blame any community.
Apropos this situation, I do not see room to discuss stealing, I am not aware of any crime or even allegation.
I am very disturbed by your name, do you really call yourself as one who does mesira?

38

 Apr 07, 2016 at 09:27 PM reply to moser Says:

If your name is Moser, as in Moseri, I apologize for misconstrueing the name as related to the word for one that does mesira.

39

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