August 27, 2024
Bill Oxford/Unsplash
The Philadelphia Housing Authority will purchase the Brith Sholom House, above, for $24 million under a sale approved by a Court of Common Pleas judge Monday. For years, tenants have complained about deteriorating conditions while the owners racked up debts.
Hundreds of tenants at the Brith Sholom House in Wynnefield are getting a new landlord after a judge approved the sale of the senior housing complex on Monday.
Court of Common Pleas Judge Anne Marie Coyle allowed the Philadelphia Housing Authority to purchase the property for $24 million. With the sale, the 360-unit building at 3939 Conshohocken Ave. will remain affordable housing, and city officials have pledged to begin repairing the dilapidated building.
Broken elevators, leaky ceilings and malfunctioning heating and cooling systems will be addressed, city officials said. Sanitation issues, mold remediation, pest control and security enhancements are underway.
"The veterans and seniors living in the fourth quarter of their lives at the Brith Sholom House deserve to live in a safe and dignified environment," Councilmember Curtis Jones said. "This acquisition is a testament to what we can achieve when we come together for the greater good."
The deal is with mortgage holder New World Commercial Credit, which had approved a $36 million loan to a company tied to the Puretz family. The building's corporate owner, Brith Sholom Winit LP, filed for bankruptcy in August 2023, but the bankruptcy petition was dismissed and the property was placed into receivership. The receiver, Stockton Real Estate Advisor, began bringing the building up to code, but did not have enough money to address all of the issues.
Over the years, the Puretz family purchased more than 100 affordable housing complexes in at least 21 states, often stripping them of their equity and allowing them to fall into disrepair, the Inquirer reported in July. In some cases, the Puretz family allegedly deceived lenders or cheated utility companies. They often defaulted on their loans, including the one for Brith Sholom House and a $29 million loan on a building a block away from the Brith Sholom.
Aron Puretz and his son Eli have pleaded guilty to mortgage fraud in federal court in New Jersey. Aron's brother Chaikel has been charged with stealing utility payments from tenants in Indiana.
Brith Sholom tenants had complained for years about leaks, mold, pests, squatters, code violations and other issues with the building.
Brith Sholom House was constructed a senior housing complex in the 1960s by a Jewish fraternal organization. The Brith Sholom Foundation sold the building to Brith Sholom Winit in 2012.
The sale proceeds will cover the costs of settlements with companies including PECO, though creditors won't be making back all that's owed to them. The housing authority negotiated settlements with the Philadelphia Water Department and Philadelphia Gas Works, who also are owed money, to prevent shutoffs. Utilities are included in the rent at Brith Sholom, and the owners owed more than $500,000 to PGW.
The sale is expected to close by the end of this week.
