Yesterday brought word that Raphael Toledano's Brookhill Properties is selling two of his East Village properties — 221 E. 10th St. and 58 St. Mark’s Place — as part of a four-building deal worth $36 million.
The selling spree continues. Massey Knakal has listed five more of Toledano's properties, which can be bought separately or as a $64 million collection.
The buildings and their asking price, per the listing:
• 27 St. Mark's Place — $16.5 million
• 66 E. Seventh St. — $12 million
• 253 E. 10th St. — $11 million
• 510 and 514 E. 12th St. — $24.5 million (must be purchased together)
The five buildings represent 102 residential units and seven commercial units.
All five of the addresses were among those in the 16-building portfolio that Toledano purchased from the Tabak family, paying $97 million in September 2015. (In the past year, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million.)
Massey Knakal is also accepting offers on one of Toledano's first East Village properties — 97 Second Ave.
The Brookhill Properties website shows that the company owns 21 buildings in the East Village.
In an interview published by The Real Deal in June, in which Toledano boasted that he's "worth a fuckload of money, bro," the developer and aspiring shoe designer said that he will keep his core East Village assets "for eternity."
Experienced real-estate players have raised red flags about Toledano's heavy reliance on debt, per The Real Deal.
Toledano 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.
If there's precedent in judgment and money awarded more of his past and current building tenants should get on the litigous bandwagon and sue him.
ReplyDeleteI don't like him, but...If he is selling near those prices, he is making a tons of money through the capital gain. Those buildings roughly doubled in price since aquisition? He just got a huge bargain when he bought, did some tenant terrorism to increase net rental income, also happens to have bought just before market took another leap higher. Just could not have caught the wave better. Even that $1 million he settled with tenants is overall chicken feed to what he is reaping. Sad about 97 Second was in his hands, but even the restaurant replacing the lauder mat increased income tremendously. The big key was the low below market aquisition cost. The fact he borrowed tons and used other people's money to finance is another feather in his cap.
ReplyDeleteNo one should be happy that this piece of shit is selling until they find out wbo he's selling *to*. Cos in this market, it ain't gonna be to some benevolent individual, it's either going to be to a rapacious corporation or to another human Great White.
ReplyDeleteIf he's selling buildings he held for less than a year, he's going to get hit with a ton of short-term gain tax.
ReplyDeleteA gain is a gain, also there are ways to offset or avoid the gain.
DeleteThe REAL question is: what / where is he buying???
ReplyDeleteNo way those buildings are going to sell at asking price...
ReplyDeleteThe profits from the sale will immediately go towards corrective plastic surgery to attempt to reverse the tragic makeover that made Raphael Toledano look like a human smurf.
ReplyDelete9:49
ReplyDeleteNot if he rolls his gains over into other real estate.
Bushwick look out.
And disappointingly, it appears that he is "worth a fuckload of money, bro."
http://www.zerohedge.com/news/2016-09-07/nyc-real-estate-weakness-spreading-lower-pricing-tiers
ReplyDeletehe will not get hit with a huge tax bill , he will do a 1031 exchange (look it up) and then borrow on the new properties , will put millions in his pocket.
ReplyDeleteSorry, but something's fishy here. It was noted at the time that the buildings were purchased that the price for the portfolio was significantly below market price. Someone is trying to dodge taxes and Toledano is only one player in this game.
ReplyDeleteNo matter how much money he makes, he'll ALWAYS be a smurf. Or a gnome.
ReplyDeleteSounds like he got in over his head. I applaud the tenants who stood up to him and got in the way of his plans.
ReplyDeleteHate to break it to you but these were his plans. He is going to make a ton of money off these deals. Got in over his head? He borrowed money- flipped some properties- will pay back the loans and take home a fortune and also buy more properties somewhere else. The tenants stood up to him? A million dollars is just the cost of doing business. How much of that million goes to the lawyers and taxes? How many tenants will split whatever is left? I hope those tenants are RS lifers who never plan to move because they will have serious problems renting another apt in NYC if they have a history of suing the landlord. Donnie Moder is 100% correct in his comments.
ReplyDeleteProbably because the EV is a horrible place to actually live. Average 35-50 EMS sirens per day. PTSD is the only thing guarateed in the EV.
ReplyDeleteHe might be rich but he is not self-made. He used Aaron Jungreis' money and connections to set up an under the table deal to buy a portfolio of buildings significantly below market price. Jungreis could have chosen anyone to play the part that Toledano played and the result would have been the same.
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