Hundreds of tenants at Brith Sholom House in Wynnefield will have a new landlord after a judge approved the sale of the senior living complex on Monday.
Judge Anne Marie Coyle of the Court of Common Pleas 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 an affordable housing development, and the city government has pledged to begin repairing the dilapidated building.
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Broken elevators, leaky ceilings and malfunctioning heating and cooling systems are being addressed, city officials said. Sanitation issues, mold remediation, pest control and safety improvements are underway.
“The veterans and seniors living at Brith Sholom House in the fourth quarter of their lives deserve to live in a safe and dignified environment,” said Council Member Curtis Jones. “This acquisition is a testament to what we can accomplish when we come together for the common good.”
The deal was made with mortgage lender New World Commercial Credit, which had provided a $36 million loan to a company linked to the Puretz family. The building’s corporate owner, Brith Sholom Winit LP, filed for bankruptcy in August 2023, but the bankruptcy petition was denied and the property was placed in receivership. The receiver, Stockton Real Estate Advisor, began bringing the building up to code but did not have enough money to fix all the problems.
Over the years, the Puretz family bought more than 100 affordable housing complexes in at least 21 states, often stripping them of their equity and letting them fall into disrepair, the Inquirer reported in July. In some cases, the Puretz family allegedly defrauded lenders or utility companies. They often defaulted on their loans, including the loan for the Brith Sholom House and a $29 million loan for a building a block 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 was charged with stealing utility payments from tenants in Indiana.
Brith Sholom tenants had complained for years about leaks, mold, vermin, squatters, building code violations and other problems with the building.
Brith Sholom House was built in the 1960s by a Jewish fraternity as a senior living complex. The Brith Sholom Foundation sold the building to Brith Sholom Winit in 2012.
Proceeds from the sale will cover the cost of settlements with companies like PECO, although creditors will not recoup all the money owed to them. The housing authority has negotiated settlements with the Philadelphia Water Department and Philadelphia Gas Works, which are also owed money to prevent shutoffs. Utilities are included in Brith Sholom’s rent, and the owners owed PGW more than $500,000.
The sale is expected to be completed by the end of this week.
