Allure Group pays $160M for Leser Group Bay Ridge medical center, owns adjacent nursing center
9036 7th Avenue (Credit - Google)
The Allure Group has purchased the SUNY Downstate Medical Center location in Bay Ridge for $160 million, city public records show, in a two-sale process.
The transfers include the center at 9036 7th Avenue and a one-story parking garage at 9012 7th Avenue. The Allure Group already owns the large adjacent property, the Hamilton Park Nursing and Rehabilitation Center, with an address of 691 92nd Street.
The first transfer was the Leser Group selling the 7th Avenue properties to Pearl Schwartz’s Bayridge Lok Holdings, LLC for $153 million. The second transfer was Schwartz selling the two properties to Allure Group, which acquired them through the entity 699 92nd Street, LLC.
The signatory for the Allure Group was the company’s principal Marvin Rubin. Pearl Schwartz signed for the seller in the second of the two transactions.
Both deals closed on June 3, 2022 and were recorded on June 27, 2022.
In December of 2021, Pearl Schwartz as trustee of Prospect Bayridge LLC, which is the Managing Member of the debtor Bayridge Lok Holdings LLC, filed for bankruptcy protection to protect its interest in the property. The acquisition was financed with a $121.5 million loan provided by Webster Bank.
The two properties have 179,315 square feet of built space and 4,284 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $892 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 699 92nd Street.
Prior sales and revenue
Out of the two properties, one with a total of 179,315 square feet of built space generated revenue of $52,061 per year.
The property
The 699 92nd Street parcel has frontage of 335 feet and is 167 feet deep with a total lot size of 43,922 square feet. The lot is irregular. The zoning is R4B which allows for up to 0.9 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $28.9 million.
The 9012 7th Avenue parcel has frontage of 91 feet and is 87 feet deep with a total lot size of 6,800 square feet. The lot is irregular. The zoning is R4B which allows for up to 0.9 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $265,000.
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Violations and lawsuits
The properties were involved in no lawsuits and one bankruptcy over the past two years. The bankruptcy was filed on December 21, 2021, by Pearl Schwartz, Prospect Bayridge LLC, PJS 2021 Family Trust Trust, and Bayridge Lok Holdings LLC citing assets of $153 million. In addition, according to city public data, the properties have received $19,200 in OATH penalties in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.