Centers Health Care Sells Flagship Nursing Home For $162M
Controversial nursing home real estate investor Daryl Hagler has sold Boro Park Center, a Brooklyn nursing home, for $161.5M.
The nine-story, 504-bed building at 4915 10th Ave. has been operated by Centers Health Care, a company owned by Hagler and Kenny Rozenberg.
The price tag 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.
Centers operates dozens of assisted living, adult daycare, short-term rehab and home healthcare facilities across New York City and the greater Tri-State Area. Boro Park Center is listed as the company’s flagship facility on its website.
Neither Hagler nor Centers immediately responded to Bisnow’s request for comment.
The buyer of Boro Park Center is 4915 10th SNF Realty LLC, a Lakewood, New Jersey-based company registered to Shmuel A. Serle on property records. Serle couldn't immediately be reached for comment.
Huntington National Bank provided a $64M mortgage for the deal as part of a larger $130.7M loan agreement, according to an agreement filed in the city register.
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 with New York Attorney General Letitia James over allegations of financial fraud and resident mistreatment. 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.
