Centers Health Care Sells 3 Brooklyn Nursing Homes For $296M
Controversial nursing home real estate investor Daryl Hagler has sold three Brooklyn properties for a combined $296M.
The three facilities — the Boro Park Center, the Brooklyn Center for Rehabilitation and Nursing, and the Bushwick Center for Renal Dialysis — are operated by Centers Health Care, a company owned by Hagler and Kenny Rozenberg.
The largest deal among the three is for the Boro Park Center, a nine-story, 504-bed building at 4915 10th Ave. The price tag of $161.5M is more than eight times what Hagler paid when he acquired the property.
He bought the facility for just $19M in 2011, according to property records filed with the city. In 2017, Hagler refinanced the property with a $78.4M loan.
Several Lakewood, New Jersey-based LLCs were identified as the buyers in property records, all signed by Shmuel A. Serle. PincusCo identified the buyers as affiliates of healthcare company Emerald Group.
The Brooklyn Center for Rehabilitation and Nursing at 170 Buffalo Ave. in Crown Heights sold for $73.5M. Hagler bought the property in 2014 for $19.5M.
Three lots tied to the Bushwick Center for Renal Dialysis building at 51 Georgia Ave., 50 Sheffield Ave. and 2629 Fulton St. traded for more than $61M. Hagler picked up the properties for approximately $10M in 2010.
Huntington National Bank provided almost $240M to finance the purchase.
Hagler, Centers and Emerald Group didn’t respond to Bisnow’s requests for comment.
Centers operates dozens of assisted living, adult daycare, short-term rehab and home healthcare facilities across the Tri-State Area. Boro Park Center is listed as the company’s flagship facility on its website.
The buyer of Boro Park Center is 4915 10th SNF Realty LLC, a Lakewood, New Jersey-based company registered to Serle in property records. Serle couldn't immediately be reached for comment.
At the end of 2024, Elevance Health acquired Centers Plan for Healthy Living, the insurance arm of Centers, in a deal that valued the company at more than $1.1B, according to Securities and Exchange Commission filings.
The deal closed after Hagler and Rozenberg settled allegations of financial fraud and resident mistreatment with New York Attorney General Letitia James. As part of the settlement, the partners had to pay $45M, much of which went toward improving resident care and staffing. Independent financial monitors were imposed to oversee the facilities.
The AG investigation targeted four Centers nursing homes in the Bronx, Queens, Erie County and Westchester County. Among the allegations were that Hagler, as landlord, charged the facilities, operated by Rozenberg, inflated rents to divert Medicaid and Medicare funds to themselves.
Centers reached another $6M settlement in July with John Sarcone, U.S. attorney for the Northern District of New York, to resolve allegations that 44 Centers nursing facilities submitted fraudulent cost reports to Medicare. Centers admitted that its cost reports have contained false statements or material omissions of the company's business dealings with itself.
UPDATE, MARCH 26, 12:30 P.M. ET: This story has been updated to include the transactions for the Brooklyn Center for Rehabilitation and Nursing and the Bushwick Center for Renal Dialysis, as well as to identify the buyers as affiliates of the Emerald Group.
