East Village tenants pay landlord Raphael Toledano a visit at his Upper West Side home

Members of the Toledano Tenants Coalition (TTC) visited the Upper West Side home of Raphael Toledano last Saturday "to bid farewell to the junior speculator landlord" whom they’ve battled for the last two years, ever since he purchased more than 20 East Village buildings, according to a statement from the group.

Tenant organizations from around the city associated with Stabilizing NYC joined the protest. Some participants wore Toledano masks and carried signs that riffed on his boastful quote last summer to The Real Deal: "I'm worth a fuckload of money, bro."

There was also some dancing.



As previously reported, Madison Realty Capital has replaced the 27-year-old landlord as the property manager of 15 East Village buildings while a deal to transfer the ownership is worked out. In late March, the LLCs that Toledano used to purchase the 15 buildings in the Madison Realty portfolio filed for Chapter 11 bankruptcy.

Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million in the fall of 2015. Since then, he has been accused of a variety of predatory practices.

In addition, 20 of his buildings were tested for toxic levels of dust. Last spring, Toledano agreed to pay more than $1 million to settle a lawsuit that alleged that he harassed rent-regulated residents at 444 E. 13th St. He also apparently ruined Thanksgiving last year for a few East 12th Street residents.

Here's more from a statement on Saturday's Toledano rally:

Tenants believe the time has come to make Mr. Toledano feel less comfortable at his home since, according to tenants, he has seen fit to do the same to them. Tenants report that Mr. Toledano has on at least two occasions refused to meet face to face with them and elected officials to discuss issues of importance to tenants, and so tenants say they are voicing their concerns directly to Mr. Toledano at his home.

[Saturday's] protesters assert that Mr Toledano has not met his obligations as a responsible landlord, forcing tenants to live in vermin-infested buildings without cooking gas and creating construction chaos as he haltingly renovates buildings.

[Photo by Nina d'Alessandro]


[Photo by Jim Markowich]

The Times reported this past Sunday that Toledano was selling off his other East Village properties that are not part of this 15-building portfolio in foreclosure. Per the Times:

[Toledano] said he was in contract with an investor to buy a $200 million portfolio of properties in the West Village, a neighborhood where he said tenants were less organized.

I kind of want to get out of the East Village walk-up business, to be honest," he said, without a hint of remorse. "There is so much scrutiny of the buyouts."

Responding to Toledano’s statement to the Times, the TTC vowed to help West Village tenants to resist him. One sign at the rally read "You can’t hide in the city, Raphael Toledano, We will find you!"


[JM]

Previously on EV Grieve:
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Cleaning up 444 E. 13th St.

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

[EVG file photo of 233-235 E. 5th St.]

Last month, we shared a letter that the Toledano Tenants Coalition wrote to elected officials about their ongoing concerns with the demolition taking place in properties run by Brookhill Properties and its founder and principal, Raphael Toledano.

To date, three of the buildings, 235 E. Fifth St., 233 E. Fifth St. and 514 E. 12th St., were said to have elevated lead levels in common areas, according to the City’s Department of Health and Mental Hygiene (DOHMH).

On Friday, the elected officials — led by State Sen. Brad Hoylman and Manhattan Borough President Gale Brewer — blasted Toledano for unsafe living conditions, including prolonged exposure to lead dust.

"I’ve heard from scores of constituents about the harassment they’ve endured in Toledano buildings. And now we’ve learned their health is at risk, too, because of dangerously high levels of lead dust," Hoylman said in a statement. "The situation is outrageous and unacceptable. Mr. Toledano needs to remedy this immediately."

In response, the DOHMH has promised to inspect all of Toledano-owned buildings for possible lead dust contamination. (He closed on a 16-building portfolio in the neighborhood last fall.)

Construction-related issues aside, tenants continue to report feeling harassed by Brookhill.

"Many long-term residents of rent-regulated apartments have been served with frivolous legal actions that require them to hire lawyers even though it has been clear that the actions would not make it to court," said Nina d'Alessandro, a resident of 231 E. Fifth St. "Then they have been approached with low buyout offers. We have tried to meet with Mr. Toledano to express our concerns and request that our rights to health and homes be safeguarded, only to be evaded and met with more intimidation."

The letters from the elected officials to Toledano and the Health Department are below. The letters were signed by Hoylman and Brewer; Assembly Members Deborah Glick, Richard N. Gottfried and Brian Kavanagh; and Council Members Corey Johnson and Rosie Mendez. Congresswoman Carolyn Maloney signed the letter to DOHMH.

A spokesperson for Brookhill told the Daily News that any health and safety issues brought to its attention will be immediately remedied.





Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Report: Management company sues Raphael Toledano for backing out of $130 million loan

Ongoing concerns about demolition work and elevated lead levels in Toledano-owned buildings

Frozen: A Raphael Toledano-style turkey dinner on 12th Street for residents without cooking gas

[Image via Facebook]

Residents at the Raphael Toledano-owned 325 E. 12th St. say they have been without gas for cooking for more than six months now. Yesterday morning, some of the tenants, along with other members of the Toledano Tenant Coalition, held a protest and "Toledano-Style Turkey Dinner" — featuring Banquet frozen turkey dinners — here between First Avenue and Second Avenue.

A handful of tenants announced that they are taking the under-investigation landlord to court. Here's more via an advisory from the Cooper Square Committee:

Now eight of the tenants are fighting Raphael Toledano in court for an order to restore the gas — one that his lawyers are vehemently resisting. While Mr. Toledano and his agents are likely enjoying warm and cozy kitchens filled with the aroma of holiday cooking, the kitchens of 325 East 12th Street will be cold & empty… except, perhaps, for the echo of Mr. Toledano, spouting empty promises of gas restoration and better relations with his tenants. Mr. Toledano has refused to meet face to face with tenants and elected officials on two occasions and opted to send his legal team (Belkin Burden Wenig & Goldman, LLP) instead.

And a statement:

"The Toledano Tenant Coalition believes that Mr. Toledano continues to harass tenants by unreasonable non-renewal of leases and through slow, poorly managed building construction designed to make tenant’s homes unlivable. The coalition also asserts that Mr. Toledano has irresponsibly forced both stabilized and market rate tenants to live for months without cooking gas in buildings overrun with vermin. The coalition remains committed to ending what they see as Mr. Toledano’s campaign against the tenants that call his buildings home."

Sen. Brad Hoylman also attended yesterday's protest...

Tenants at 325 E 12th St won't have cooked meals this #Thanksgiving because landlord has denied them gas for 7 mos. This is unacceptable! pic.twitter.com/fVfKABxg8z

— Senator Brad Hoylman (@bradhoylman) November 22, 2016

Bedford + Bowery has more on yesterday's Toledano-turkey gathering here.

Back in August, Toledano’s Brookhill Properties held a poorly received ice cream social for its residents, including the 12th Street tenants without gas for cooking. At the time, a Toledano spokesperson told The Real Deal that it was up to Con Ed and the city to address the situation. However, a Con Ed rep said that the shutdown at No. 325 "was prompted by an internal gas leak at the 12th Street building and that the company can’t restore service until Toledano makes necessary repairs."

Toledano, who told a reporter for The Real Deal in June that he's "worth a fuckload of money, bro," has been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust. In May, Toledano agreed to pay more than $1 million to settle a lawsuit that alleged that he harassed rent-regulated residents at 444 E. 13th St.

He is currently selling several buildings from his East Village portfolio.

The housing limbo of Raphael Toledano's (former) East Village tenants

The New York Times delved into Raphael Toledano's crumbling East Village real-estate empire yesterday... focusing specifically on the resnt-stabilized residents who accepted buyouts to leave their homes — but have yet to receive their payment.

When we last checked in with Toledano, Madison Realty Capital had replaced the 27-year-old landlord as the property manager of 15 East Village buildings while a deal to transfer the ownership was worked out.

Toledano planned to use $124 million worth of financing from Madison Realty Capital for buyouts and renovations.

Per the Times:

What followed was a familiar playbook: Coerce tenants to give up their valuable rent-regulated apartments with threats of eviction or offers of cash payouts, or both. Once the tenants leave, renovate the empty spaces and lease them for considerably more money. “At the end of the day, it’s a part of the business plan,” Mr. Toledano said in a telephone interview.

Then...

“He made it really clear that he was going to make it a miserable place to live,” said Jen Bekman, 47, an entrepreneur who lives in another Toledano-owned building, on East Fifth Street. She also fielded daily calls and texts from the landlord. “Sometimes he’d lose his temper. You could just tell that he was kind of volatile.”

The clock was ticking for Mr. Toledano. His deal with Madison Realty Capital gave him a year to clear out apartments, then renovate and rent them.

In the end, 140 of the 300 tenants who lived in the 15 buildings signed buyout agreements, totaling $7 million in payouts, Toledano confirmed. (Bekman received the largest payout offer — $600,000 for the $1,900-a-month, one-bedroom apartment she lived in for 25 years.)

However, by the time all the buyout offers were finalized, Toledano no longer had the money to pay his debts.

To shield himself from personal liability, Mr. Toledano had purchased each of his properties using limited liability companies. Last summer, the L.L.C.s that owned the buildings in the Madison Realty portfolio went into default and Madison stopped funding the buyouts.

So the residents who took the buyouts are in various stages of housing limbo. You can read the piece for more.

Meanwhile, Toledano has sold off other pieces of his East Village portfolio, as we've noted.

You may want to warn anyone you know who lives in the West Village.

Back to the Times:

[Toledano] said he was in contract with an investor to buy a $200 million portfolio of properties in the West Village, a neighborhood where he said tenants were less organized.

“I kind of want to get out of the East Village walk-up business, to be honest,” he said, without a hint of remorse. “There is so much scrutiny of the buyouts.”

Previously on EV Grieve:
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Cleaning up 444 E. 13th St.

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

[Updated] Raphael Toledano is now funding the Creative Little Garden on 6th Street

Via the EVG inbox...

Raphael Toledano, President of Brookhill Properties, LLC, a premier New York based real estate investment company, is pleased to announce its funding and participation in the maintenance and upkeep of the Creative Little Garden, located at 530 E. 6th Street between Avenues A and B.

Since 1982, the Garden has been a sanctuary of peace for the neighborhood and is considered by East Villagers and New Yorker’s alike to be their “community backyard” garden. Members collaborate on the landscaping of the garden, but there are no plots tended by individual gardeners. By doing this, the space has been able to become the tranquil oasis that many recognize it is today.

“We are happy to be giving back to the community in a way that helps maintain a peaceful and safe space for so many East Village’s residents and visitors,” said Courtney Knopf, Executive Vice President at Brookhill Properties. “By contributing to the Creative Little Garden, Raphael Toledano and Brookhill Properties hope to promote a greater appreciation for the environment as well as a close and supportive community.”

The Creative Little Garden is funded solely by contributions and dues paid by their members. There are expenses necessary for the maintenance of the space, but there is no paid staff. The space operates under the jurisdiction of the NYC Parks Department with help specifically from the Greenthumb program and the NYC Council on the Environment.

In his short time as a landlord in the East Village, the 26-year-old Toledano has made headlines in media outlets citywide for alleged harassment and intimidation of tenants, for which he is reportedly under state investigation at 444 E. 13th St. Local elected officials have also blasted Toledano for unsafe living conditions after the the City’s Department of Health and Mental Hygiene found elevated lead levels in the common areas of three of his buildings.

Toledano is the latest controversial East Village landlord to announce programs intended to give back to the neighborhood. Back in the spring, Icon Realty donated empty retail spaces for Celebrity Catwalk to hold adoption and fundraising events and unveiled plans for public art at several of its properties.

Updated 7/17

Via the comments...

The Creative Little Garden said...
There definitely have been no donations in the past two months to the garden. The press release reported in this article was dated Tuesday last week, and I learned about it late last night. I've been hunting around the internet today, and have found seemingly old, but vague, claims that Toledano has donated to the garden in the past. If true, it was a terrible mistake. Toledano does not represent the values of the Creative Little Garden. Franciose's ashes are there, and she would shoot rose thorns at him.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brookhill Properties

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Report: Management company sues Raphael Toledano for backing out of $130 million loan

Ongoing concerns about demolition work and elevated lead levels in Toledano-owned buildings

Raphael Toledano to pay $3 million, faces possible lifetime real-estate ban, for harassing EV tenants

New York AG Letitia James yesterday announced a settlement with notorious East Village landlord Raphael Toledano to put an end to his harassment of tenants and to prevent him from engaging in speculative real-estate deals.

Let's go right to the news release via the AG's office...

Under the terms of the Consent Order (stipulation and judgement) being submitted to the Court, Toledano’s real estate business will be supervised by an Independent Monitor, who will ensure that Toledano ceases to engage in fraud and tenant harassment. Toledano will not be allowed to have any direct contact with tenants, and will be required to hire an independent management company for any of his properties.

In addition, Toledano has agreed to pay $3 million in damages and penalties. If Toledano violates the terms of his agreement, then Attorney General James will seek a lifetime bar against any further participation in the real estate industry, as well as a suspended judgment of $10 million.

Attorney General James and Governor Cuomo’s Tenant Protection Unit (TPU) within New York State Homes and Community Renewal began investigating Toledano after receiving complaints from tenants and community advocates about his use of harassment, unsafe construction, and other illegal conduct to push tenants out of their rent-stabilized homes.

As set forth in the Complaint filed in New York Supreme Court, Attorney General James’ investigation established that Toledano engaged in a pattern of fraudulent and illegal conduct throughout his work as a landlord and real-estate developer.

He harassed tenants through coercive buyouts, illegal construction practices and failed to provide his rent-regulated tenants with utilities, repairs, and other necessary services. Toledano also engaged in deceptive business practices in his real-estate transactions, including repeatedly and persistently misrepresenting himself as a lawyer and advertising apartments with 3 or 4 bedrooms, when legally the apartment could only have 1 or 2 bedrooms.

It's not immediately clear how many properties Toledano still owns. (His Brookhill Properties website is no longer active.) Toledano, who bought up dozens of East Village properties only to foreclose on many of them later, is still the owner — via an LLC — of 444 E. 13th St. between Avenue A and First Avenue.

In March, he reportedly filed for bankruptcy on the building, and was attempting to reject the rent-stabilized leases for a number of residents in the building, per NBC 4. However, AG James and several housing officials from the city and state intervened to help the tenants.

In previous years, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million. Experienced real-estate players raised red flags about Toledano's heavy reliance on debt.

In an interview with The Real Deal in June 2016, Toledano, then 26, made "frat-tastic boasts about his wealth," including: "I’m worth a fuckload of money, bro."

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Cleaning up 444 E. 13th St.

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Notorious East Village landlord Raphael Toledano faces 5-year real-estate ban

[5th Street buildings that were part of Raphael Toledano's portfolio] 

New York Attorney General Letitia James announced a court victory yesterday against notorious East Village landlord Raphael Toledano. 

An order by the New York Supreme Court bars Toledano from engaging in any New York real-estate business activity for at least five years, at which point he can petition the court for re-entrance.

Per a release from the AG's office:

This decision comes after Toledano repeatedly violated a 2019 agreement with the Office of the Attorney General (OAG) that required him to stop harassing New York City tenants and stop engaging in illegal and predatory real-estate practices. 

"New York tenants can breathe more easily knowing that Rafi Toledano is no longer in the real estate business," said James. "Through his deceptive and illegal actions, Toledano caused incredible pain and suffering to hundreds of vulnerable families, who are still feeling the effects of his harassment today. Every New Yorker deserves to live in a safe, decent home free of abuse and fear."

Here's some of what James found from her previous investigation:

" ... established that Toledano engaged in a pattern of fraudulent and illegal conduct throughout his work as a landlord and real estate developer. Toledano harassed tenants in the East Village through coercive buyouts and illegal construction practices, and failed to provide his rent-regulated tenants with utilities, repairs, and other necessary services. 

Toledano also engaged in deceptive business practices in his real-estate transactions, including repeatedly and persistently misrepresenting himself as a lawyer and advertising apartments with three or four bedrooms, when legally the apartment could have one or two bedrooms only."

The AG's office outlined how Toledano violated his 2019 agreement: 

• Failing to disclose his real-estate business activities to the independent monitor or to get the monitor's approval for further deals 
• Diverting funds from a reserve account established by the agreement 
• Failing to make penalty payments (other than initial payments totaling $520,000) 
• Failing to maintain his properties in a manner that complied with applicable laws and protected tenants' rights, health, and safety.

It's not immediately clear how many properties Toledano still owns. 

Last May, Madison Realty Capital (MRC) closed on Toledano's bankrupt East Village portfolio. Toledano had received $124 million in cash and lines of credit from MRC to finance his $97 million purchase of the buildings. 

Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million in 2015. Experienced real-estate players raised red flags about Toledano's heavy reliance on debt.  

In an interview with The Real Deal in June 2016, Toledano, then 26, made "frat-tastic boasts about his wealth," including: "I'm worth a fuckload of money, bro."

Previously

Report: Management company sues Raphael Toledano for backing out of $130 million loan

Landlord Raphael Toledano is facing more legal woes following the purchase last September of a 16-building East Village portfolio.

The Real Deal has the story:

An affiliate of Larry Gluck’s Stellar Management is suing Raphael Toledano, claiming the investor accepted a $130 million mortgage to finance the acquisition of his East Village portfolio, but then backed out of the deal and refused to pay the $1.9 million break-up fee.

“Almost immediately after signing the contract on July 15,2015,” Stellar states in the suit, “Toledano opted to take out a $124 million loan from Madison Realty Capital to finance the portfolio purchase. Toledano's agreement with Madison Realty Capital was in direct violation of the exclusivity provision of the contract and constitutes as a breach of contract.”

The is the latest legal matter involving Toledano to make headlines. Last spring, rent-regulated tenants at 444 E. 13th St. accused Toledano, 26, and a management company he hired of harassment and intimidation.

Prior to closing on the East Village deal this past fall, Toledano's uncle, Rosewood Realty Group's Aaron Jungreis, sued his nephew, claiming that he was squeezed out of the deal. (That suit was later settled.)

In December, The Real Deal reported on a possible link between Toledano and a fake law firm, Truman & Wildes LLP.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Ongoing concerns about demolition work and elevated lead levels in Toledano-owned buildings

[Image from April 12 via the Toledano Tenants Coalition]

We received the following letter on Friday (other recipients include Manhattan Borough President Gale Brewer, State Sen. Brad Hoylman and City Council member Rosie Mendez)....

To: Raphael Toledano and Brookhill Properties
From: Toledano Tenants Coalition
Date: 4/20/16

The Toledano Tenants Coalition is gravely concerned about demolition taking place at buildings owned by you, or entities controlled by you.

The NYC Department of Health and Mental Hygiene (DOHMH) has placed violations for elevated levels of lead dust in several of your buildings, causing the Coalition concern for tenant safety during ongoing demolition. Specifically, the NYC Department of Health and Mental Hygiene (DOHMH) found that samples taken at three buildings you own contain elevated lead levels ranging from 1.5 to 16 times acceptable levels.

The three buildings, 235 East 5th Street, 233 East 5th Street, and 514 East 12th Street, were found to have elevated lead levels in common areas. Two of these buildings are home to children under six years old. Elevated lead levels can be hazardous to anyone, and can cause physical and developmental disabilities in children under six years old.

When you, or entities controlled by you, do demolition work that poses a potential risk of lead exposure to tenants, we demand that:

• A proper lead mitigation plan that utilizes an EPA-certified abatement contractor is put in place;
• Local Law 1, the New York City Childhood Lead Poisoning Prevention Act of 2004, is followed.

In addition, we demand you take the following precautions to protect tenants:

• Notify building residents two days in advance of demolition work.
• Post warning signs outside work areas while work’s in progress.
• Clean, clear, and seal off work areas.
• HEPA-vacuum before doing work.
• Cover/seal ALL windows, floors, vents and doorways with plastic and waterproof tape.
• HEPA-vacuum and wet-mop work areas after each day's work.
• Store work materials in sealed containers, or remove them from premises after each day’s work.
• Carefully discard debris, and ensure that no dust or debris is tracked out of work areas.
• Spray plastic barriers with water mist, and safely remove them; fold and seal plastic in plastic bags.

Tenants have been advised that if they don’t believe you’re complying with the law, including the legally mandated demands outlined above, they should call 311, and report your activities to the relevant city agencies, including DOB, HPD, DEP, and DOHMH.

In closing, please don’t use demolition/renovation as a ploy to begin buyout discussions with tenants.

Sincerely,
The Toledano Tenants Coalition

On April 12, several members of the Toledano Tenants Coalition and other activists gathered in front of the Brookhill offices at 298 Fifth Ave. "to fight against eviction efforts and other problems at their buildings," as The Villager reports in its current issue.

A Brookhill spokesperson told The Villager that they dispatched "a professional remediation crew [that] quickly rectified the situation and brought the property into full compliance" upon receiving a notice from the Department of Health.

"We continue with constant monitoring of the property to ensure the health and safety of all of our tenants, which is our primary concern," the spokesperson told The Villager.

However, Coalition members said that the work continues unabated.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Report: Management company sues Raphael Toledano for backing out of $130 million loan

More about alleged harassment and landlord visits via Brook Hill Properties

[Photo from May by Stacie Joy]

Raphael Toledano and his Brook Hill Properties continue to make headlines. Here's a look at two recent published reports…

-----

In case you missed the Page 1 story in The New York Times yesterday … the paper published additional recordings between rent-stabilized tenants of Toledano's 444 E. 13th St. and one of his alleged brokers.

In an ongoing legal fight, the tenants submitted audio and video recordings to housing court depicting the agents trying to scare them into leaving their apartments.

“The building is going to be shaking; the vermin will start running,” one agent, who identified himself as Newton Hinds in a cellphone audio recording, said about the planned demolition.

According to the Times, Toledano denied harassing the tenants, and blamed Goldmark Property Management, which he subsequently fired, for all the problems. (Lawyers for Goldmark have denied in court papers that Hinds worked for them.)

In any event, the state's Tenant Protection Unit and attorney general's office are reportedly investigating the situation at No. 444, which Toledano bought in January for $6.1 million ... "and had subpoenaed information on Mr. Toledano's properties."

Toledano's East Village portfolio has grown substantially in recent months. In September, Brook Hill Properties completed the purchase of 16 East Village buildings from the Tabak family, paying $97 million for a portfolio that amounts to 301 apartments and 15 retail spaces.

The current issue of The Villager has a detailed article about the encounters residents of the recently acquired buildings on East Fifth Street have had with the 25-year-old Toledano, who often goes by Raffi.

To date, tenants in six of Toledano’s E. Fifth St. buildings have documented more than 140 interactions, altercations and outright threats by Toledano and his camp during the two-month period from this July 8 through Sept. 8. Some have reported being followed in the street by Raffi’s cousin Isaac Toledano, while others report encounters with a group of men dressed in black stepping out of SUV’s and insisting on entering and inspecting tenants’ apartments.

However, according to the article, there haven't been any "recorded complaints or reports of harassment by Toledano and his team" since Sept. 8. And as we noted on Sept. 23, some tenants in the buildings received welcome letters and boxes of chocolates from Brook Hill.

The charm offensive wasn't limited to residents. A volunteer at the 6th Street and Avenue B Community Garden shared this letter with us:

By way of introduction, I work with Brook Hill Properties, a new landlord in the East Village. One of our commitments is to serve the community and its residents. As part of that, we are interested in partnering with organizations such as the 6&B Garden to explore ways in which we can work together in the East Village neighborhood.

We would welcome the opportunity to come to the garden and learn more about your vision and goals as a leading community group. In doing so, we are hoping to better understand the role we can play in becoming an active community partner.

Meanwhile, according to The Villager, Toledano is currently under contract to purchase an additional 11 buildings in the East Village, West Village and Murray Hill for $55 million.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

Brookhill Properties launches chocolate offensive

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Real Deal has published an investigative article about new East Village landlord Raphael Toledano, and how he allegedly misrepresented himself as a lawyer.

According to the article:

In the summer of 2014, a New York landlord with a modest portfolio received a letter from a certain Raphael Toledano, Esq. In the letter, Toledano allegedly identified himself as belonging to Truman & Wildes LLP, a Park Avenue law firm. He claimed to be representing real estate investor Josh Zegen in a 1031 exchange, and assured the landlord that his client was interested in one of his buildings and would “pay above market value” for it.

The issue, however, is that Truman & Wildes LLP is bogus. It is not a licensed law firm in the tri-state area, and isn’t even a registered entity in Delaware, Connecticut, New Jersey or New York. Its website, which was taken down shortly after The Real Deal began making inquiries, appears to be a basic web template with language lifted verbatim from legitimate law firms. Misrepresenting oneself as a lawyer is illegal.

For his part, Toledano, a former broker and now a prominent local real estate investor, denies any connection with the law firm. But property records and interviews with his former employees, business associates and industry players indicate otherwise.

In compiling nearly a 20-building portfolio, the majority of them in the East Village, the 25-year-old Toledano "has been peppered with allegations of cheating his partners and harassing his tenants," as The Real Deal put it.

To date, rent-stabilized tenants at 444 E. 13th St. have filed suit against him for alleged harassment. In addition, in August, Aaron Jungreis, one of the city's elite multifamily brokers, sued Toledano, "claiming he was squeezed out of a $100 million deal" to acquire 16 East Village buildings. (That suit was later settled.)

In addition, the landlord of Toledano's Flatiron office reportedly filed suit against him for failing to pay rent.

As for multiple identifications, City Limits noted this in an article about Toledano and 444 E. 13th St. back in September:

Curiously, there are numerous websites with similar URLs purporting to have been created by Raphael Toledanos across the country that fill up Google search results for his name. One Raphael Toledano is "a fervent traveler from the incredible state of Chicago," another is a "19-year-old boy from Ohio who wants to become an internationally recognized soccer player," and still another is "an Assistant Principal in one of the reputed schools of Rhode Island." Each of these sites was created on January 28, 2015 according to registration information on whois.net.

The last post on each of the sites is Feb. 24.

Toledano and Brook Hill closed on the 16-building East Village portfolio for $97 million back in the fall.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Santa delivers sacks of coal to Madison Realty Capital, Rafael Toledano's lenders

The following is from the EVG inbox via Tenants Taking Control ...

A festive group of holiday carolers from the TTC (Tenants Taking Control, formerly the Toledano Tenants Coalition) visited the Midtown offices of Madison Realty Capital on Monday morning. But the songs they sang were much more ironic than celebratory.

"Madison is Coming to Town" was sung to a familiar tune, but featured such lyrical enhancements as "♫ They’re making a loan ♪ They’re raising the price ♪. They’re funding a landlord who’s not very nice ♫ Madison is coming to town ♪"



In 2015, Madison Realty loaned $124 million to Rafael Toledano, a 25 year old with no track record as a landlord and a conviction for aggravated assault, so that he could buy a "portfolio" of 15 buildings in Manhattan, mostly in the East Village.

Through demolition that generated lead dust, outright neglect of the properties, aggressive buyout offers and threatened lawsuits, Toledano removed about a third of the 450+ rent-regulated tenants from those buildings before defaulting on Madison's loan and then facing foreclosure in February 2017.

On Monday, the group of remaining tenants also sang "I Had a Little Landlord" (to the tune of "I Have a Little Dreidel"). One verse went: "♪ I had a little landlord ♫ He bought the place one day ♪ He got a check from Madison ♫ And then he couldn’t pay! ♪"

The LLCs once controlled by Toledano staved off the foreclosure in March 2017 by each declaring bankruptcy. Through bankruptcy court, control of the buildings was given over in April to Silverstone Properties, the property management arm of... Madison Realty Capital. If you think that sounds kind of circular, you're not alone. It's a bit like singing a round.

In May 2017, the New York State Attorney General's office filed a massive objection (PDF here) and declaration, accusing Madison Realty Capital of practices “Consistent with a Predatory ‘Loan to Own’ Business Model.” The filings dissected the striking irregularities of the deal. Among other oddities, it references...

• "fatal flaws" in the underwriting of the loan, as evaluated by the NYC Department of Housing Preservation and Development. • clear evidence that Signature Bank (an investor in the loan) foresaw that Toledano would default, and that Madison was well positioned to take over the properties.
• floor plans for the apartments that show newly-added, windowless bedrooms, which are illegal in NYC.

Bankruptcy court hearings regarding the case have been repeatedly postponed by Madison since the AG and the DHCR's Tenant Protection Unit publicized through its filings that the ongoing investigation of Toledano had been expanded to include Madison.



On Monday morning in Midtown, Santa Claus himself made an appearance. He had a special gift for the principals of Madison: Gift-wrapped little sacks of coal. Bellowing loud enough to (possibly) be heard on the 37th floor, he pronounced that the company had been naughty.

Previously on EV Grieve:
Amid claims of being a rent-stabilized tenant, Raphael Toledano faces eviction from his home
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Cleaning up 444 E. 13th St.

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

East Village tenants pay landlord Raphael Toledano a visit at his Upper West Side home

NY AG: Madison Realty Capital to pay more than $1 million for victims of fraud and tenant harassment

The legal fallout from Raphael (Rafi) Toledano's brief yet soul-crushing stint as an East Village landlord continues.

Yesterday, New York Attorney General Letitia James announced an agreement that secures more than $1 million in rent credits for harassed tenants and provides housing placements for 10 homeless families. 

The agreement with private equity firm Madison Realty Capital comes after James found that the company aided and abetted tenant harassment and other fraud by Toledano.

"Today's agreement stands up for all the tenants harassed and pushed out of their homes by a fraudulent landlord and the lender that financed his unlawful operation," James said in a statement. "Madison Realty Capital aided one of our city's worst landlords in his unlawful scheme, but we're holding the company to account and delivering real relief to the many victims through rent credits and housing placement."

Here's more of the background and current narrative via the AG's office:

With the financial backing of Madison Realty Capital, Toledano harassed tenants through coercive buyouts; executed illegal construction practices; and failed to provide tenants with utilities, repairs, and other necessary services. 

Even with this track record, in 2015, Madison Realty loaned Toledano over $100 million to purchase a 15-building portfolio in the East Village, despite his limited experience in managing a portfolio of this size, evidence of prior tenant harassment, and plans to continue to vacate rent-stabilized tenants and renovate units in violation of law.

Attorney General James’ investigation found that Madison Realty Capital knew or should have known of Toledano’s history, that the proposed conversions were unlawful, and that the aggressive schedule for buyouts and renovations was likely to result in tenant harassment. 

As a result of the loan that allowed Toledano to take over management of the East Village Properties, Toledano did exactly that — harassing hundreds of tenants, engaging in dangerous construction practices, and failing to provide basic services. In March 2017, the East Village properties filed for bankruptcy.

Under the terms of this agreement — which also resolves claims filed against Toledano’s former business entities in New York bankruptcy court — Madison Realty Capital must now take ownership of the 15 buildings in the East Village portfolio subject to $1.05 million in rent credits. 

These rent credits will be shared among the remaining tenants who suffered through Toledano’s mismanagement of these properties. The owners of the buildings will also ensure placement of 10 formerly-homeless families and will adhere to tenant health and safety protections during construction there. 

Under the settlement agreement with the AG's office, Madison wasn't required to admit wrongdoing.

"We are pleased to have resolved this matter without admitting or denying any of the allegations raised, and will continue to work with the tenants and community stakeholders to continue to improve the buildings and bring positive change to the community," a spokesperson for Madison said in a statement obtained by The Real Deal.

In June 2019, James announced a settlement with Toledano to put an end to his harassment of tenants and to prevent him from engaging in speculative real-estate deals designed to profit by violating New York's rent-stabilization laws.

In previous years, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million. Experienced real-estate players raised red flags about Toledano's heavy reliance on debt.

In an interview with The Real Deal in June 2016, Toledano, then 26, made "frat-tastic boasts about his wealth," including: "I’m worth a fuckload of money, bro."

Previously on EV Grieve:
• Tenants call out Madison Realty Capital: Stop warehousing rent-regulated apartments

• Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table 

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

[EVG file photo of 233-235 E. 5th St.]

Members of the Toledano Tenants Coalition are distributing the following letter to media outlets and local elected officials about the ongoing situation at buildings purchased last fall by Raphael Toledano. Some of the following was also covered in a recent article published in The Villager. The Toledano Tenants Coalition shared a copy with us before its circulation elsewhere...

Dear Mr. Toledano,

Prior to and since your purchase of the Tabak real estate portfolio in Fall 2015, tenants have experienced an alarming amount of alleged harassment. You have articulated your goal to many of us: you wish to remove rent-regulated residents from their homes. Given your intention to remove units from rent-regulation, the publicity surrounding 444 East 13th Street, and other legal matters, tenants of 17 buildings in your portfolio have formed a coalition.

Since June 2015, this coalition has recorded numerous instances of such alleged harassment perpetrated by you, Isaac Toledano, and agents of Brookhill Properties. You and your property managers have allegedly engaged in activities such as:

1. Serving tenants with frivolous notices to vacate and holdover lawsuits;

2. Threatening to shut off basic services such as heat and hot water;

3. Refusing to renew rent-stabilized leases based on meritless allegations;

4. Threatening that impending construction will be an extreme nuisance and will render apartments uninhabitable in your buildings;

5. Following tenants in and around their buildings, after hours, on the street, and close to where they live;

6. Calling tenants to discuss buyout offers, even after tenants have firmly expressed that they are not interested;

7. Pressuring tenants to quickly accept buyout offers.

We would like our interactions with you to reflect the civility and respect that we believe we deserve. We further ask that you examine your methods of operation, and comply with all laws, including the Tenant Protection Act of 2008, and the newly enacted buyout protection. We would ask that you treat your role as a landlord with the gravity it deserves, and that you respect both the letter and the spirit of the law.

Sincerely,

The Toledano Tenants Coalition

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

More about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

Thoughts on Raphael Toledano: 'The dude was imploding'

The Commercial Observer has a Q&A with Michael Shah, who runs East Village-based Delshah Capital, which boasts "a diverse portfolio of New York City real estate assets approaching $1 billion in value."

The interview touched on a variety of topics, including Delshah Capital's recent deals to scoop up "commercial mortgages and particularly debt that is nonperforming or on properties that have slipped into bankruptcy."

That's when the conversation turned to Raphael Toledano, who quickly established himself as a terrible landlord in the East Village.

To the Observer's Q&A:

[T]hose deals have also earned you enemies like landlord Raphael Toledano, who allegedly said he would “bury you” after you bought the note on his building at 97 Second Avenue. What did you make of that? [In November 2017, a federal bankruptcy court judge dismissed a lawsuit filed by Toledano seeking to block Shah’s acquisition of the property.]

The dude was imploding, and it was pretty clear vultures were going to pick his carcass dry, and I wanted to be one of them. From the time Madison Realty Capital made the loan [a $124 million mortgage on Toledano’s acquisition of a 16-building East Village portfolio], it wasn’t a question of if he was going to default — it was when.

I don’t really know how anybody in their right mind believed [Toledano] was going to out-litigate us; he’s not very litigation-savvy. I think it was a lot of noise and press — he’s a colorful guy.

Before we did the deal, we had analyzed the litigation risk and knew how a bankruptcy would end, and it played out exactly how we planned. [Note: Toledano and his firm, Brookhill Properties, could not be reached for comment.]

Previously on EV Grieve:
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

East Village tenants pay landlord Raphael Toledano a visit at his Upper West Side home

Report: Raphael Toledano completes purchase of 16-building East Village portfolio

[233-235 E. 5th St.]

Raphael Toledano’s Brook Hill Properties has completed the purchase of 16 East Village buildings from the Tabak family, paying $97 million, according to The Real Deal.

The portfolio amounts to 301 apartments and 15 retail spaces. Here are the addresses (updated this list 9/12):

• 27 St. Marks Place – 20 residential units; 2 commercial units
• 66 East 7th Street – 22 residential units; 2 commercial units
• 95 East 7th Street – 20 residential units
• 223 East 5th Street – 18 residential units
• 228 East 6th Street – 20 residential units; 2 commercial units
• 229 East 5th Street – 10 residential units
• 231 East 5th Street – 8 residential units; 2 commercial units
• 233 East 5th Street – 10 residential units
• 235 East 5th Street – 10 residential units
• 253 East 10th Street – 20 residential units; 1 commercial unit
• 323-325 East 12th Street – 37 residential units
• 327 East 12th Street – 22 residential units; 2 commercial units
• 329 East 12th Street – 24 residential units
• 334 East 9th Street – 20 residential units; 2 commercial units
• 510 East 12th Street – 20 residential units; 2 commercial units
• 514 East 12th Street – 20 residential units

The deal moved forward despite the fact that Toledano’s uncle, power broker Aaron Jungreis, is suing him. According to the Daily News, the two allegedly agreed to form a joint venture to acquire the buildings, but Toledano reportedly went behind his uncle's back to buy them himself. Jungreis accuses his nephew of being "motivated solely by greed." (This suit was settled. See update below.)

In other East Village Toledano legal action... In May, rent-regulated tenants at 444 E. 13th St. filed a lawsuit against Toledano and his Goldmark Property Management for "deplorable conditions" as well as for alleged ongoing threats and harassment.

Then in August, state officials served subpoenas on Goldmark Property Managmenet, investigating whether the company threatened tenants with police raids, evictions and the shut off of essential service, as The Real Deal put it.

Updated 11:30 a.m.

Real Estate Weekly had more details on the sale...

Toledano, who at 25 is the youngest landlord in New York City with a portfolio of this size, and Brookhill Properties are focusing on this neighborhood because of its appeal to millennials (18-35 year-olds) and the significant potential for continued growth. Toledano is currently under contract to purchase an additional 11 buildings in the East Village, West Village and Murray Hill for $55 million.

“We are committed to being a force for good in the neighborhood and providing our tenants with high-quality apartments,” Toledano said. “Our company is not just a property owner, we are members of this East Village community and look forward to partnering with local groups to show our dedication.”

Updated 12:30 p.m.

The Real Deal reports that Jungreis and Toledano have settled...

“I am glad that we were able to amicably settle with Mr. Jungreis and continue focusing on what matters – serving our tenants and asserting ourselves as the largest landlord in the East Village while continuing to better the community,” Toledano told The Real Deal.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Amid claims of being a rent-stabilized tenant, Raphael Toledano faces eviction from his home

[Photo outside Toledano's apartment building from May]

The Real Deal has the story:

Hyperkinetic landlord Raphael Toledano, whose alleged methods in evicting tenants from rent-stabilized apartments made him enemy number one of the New York City tenant movement, faces eviction at his $13,800 a month Upper West Side home, where he claims to be a rent-stabilized resident, court records show.

Some local reaction:

“This has got to be a joke, right?” said SaMi Chester, a tenant organizer at the Cooper Square Committee who actively works with tenants in Toledano’s buildings; they frequently claim they are being harassed by the 27-year-old landlord. “Here’s a guy who’s built his career on screwing over rent-stabilized tenants. Now he’s doing that?”

And some background:

Toledano, who recently filed for bankruptcy on a portfolio of multifamily buildings in the East Village amid claims he was overleveraged, essentially operated a real estate business whose model depended on vacancy deregulation to crank up rent rolls.

Read the whole Real Deal story here.

According to public records, Toledano is scheduled to appear in New York County Civil Court, 111 Centre St., Monday morning at 9:30. (The Court part is called F, Room 830.)

Previously on EV Grieve:
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Cleaning up 444 E. 13th St.

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

East Village tenants pay landlord Raphael Toledano a visit at his Upper West Side home

Petition asks Madison Realty Capital to waive legal fees for evicted East Village family

[5th Street buildings that were part of Raphael Toledano's portfolio]

After a lengthy legal battle that started with landlord Raphael Toledano, longtime East Village residents Craig Smith and Elise Stone and their family have been evicted from their rent-stabilized apartment on Fifth Street.


[Smith, Stone and family]

With Toledano in bankruptcy, Madison Realty Capital is the de-facto landlord. Due to a clause in their lease, Smith and Stone are now being held accountable by Madison's lawyers for Toledano/Madison Realty Capital's legal fees, which amount to $250,000.

This petition is asking Madison Realty Capital, who reportedly manages over $4 billion of capital, to waive their legal fees.

The following, via the EVG inbox, is from the group Tenants Taking Control...

In July of 2018, Craig Smith and Elise Stone, their three college-age children Kerem, Tes and Hakima, and Elise's ageing mother Sandy were given 12 days to leave their home of 15 years — a walk-up apartment in the East Village.

Craig and Elise — much can be said about this extraordinary couple. They are parents, thespians, teachers and artists who have spent a lifetime giving to their community. Notably, they started up a local, award-winning, nonprofit theater company in 2004 that, in addition to producing shows, runs educational programs for aspiring actors, children and seniors.

The SmithStones were sued for eviction in 2015 by their new predatory landlord, Raphael Toledano, whose lawyers spotted a loophole in the city's rent-stabilization law. Rather than give up, Craig and Elise fought back. Their motivation was not just self-preservation — in keeping with their community spirit, they aimed to protect other New York City rent regulated tenants who face similar gentrification pressures. Had they won, thousands of deregulated apartments in the city could have been re-regulated.

The legal battle lasted 34 months. In the midst of it, Toledano defaulted on the loan he'd gotten from Madison Realty Capital to buy their building (along with 14 others). Although still owned by Toledano's LLC, in the bankruptcy Madison Realty Capital became the de facto landlord of the buildings, put up the money to manage the properties, and continued prosecuting the lawsuit.

In June of 2018, the Appellate Division of NY State Supreme Court ruled against Craig and Elise. Madison Realty Capital told them to leave their home, and NYC lost yet another affordable apartment. The loss to the neighborhood has been devastating.

Due to a clause in their lease, the SmithStones are now being held accountable by Madison's lawyers for Toledano/Madison Realty Capital's legal fees, amounting to $250,000. As dedicated artists and educators, this couple does not have that kind of money.

THIS PETITION ASKS MADISON REALTY CAPITAL TO DO THE RIGHT THING AND PAY ITS OWN LEGAL COSTS.
It is a private investment fund, so its earnings and revenue are not publicly disclosed. But last month, Madison's CEO Josh Zegen told The Commercial Observer: "We manage over $4 billion of capital and we have every piece of the business in-house." It's likely that they can afford their own legal fees, and still be a very profitable business.

In the same interview, there was this exchange:

COMMERCIAL OBSERVER: "What keeps you up at night?"

JOSHUA ZEGEN: "The unknown. You’re starting to really feel the rate creep more than you did six to nine months ago..."

So, the TTC (Tenants Taking Control) asked the same question of the SmithStones.

TTC: "What keeps you up at night?"

CRAIG SMITH: "Bankruptcy. No money to pay for my kids' college, no money to pay for a dentist, long commutes... the fear that we won't be able to keep the theater going, and no longer be able to show seniors and children the joy of being involved in the arts."

This family is in a precarious situation now, and really needs the help of the greater community. They have already lost their home. Please add your name to this petition, to have Madison Realty Capital relieve the SmithStones of the crushing, unfair debt burden they will otherwise face.

Here's the link to the petition.

Previously on EV Grieve:
Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

Santa delivers sacks of coal to Madison Realty Capital, Rafael Toledano's lenders

Amid claims of being a rent-stabilized tenant, Raphael Toledano faces eviction from his home