Toledano’s Brookhill Properties acquired the 39-unit, 39,000-square-foot property for $41.5 million in 2015. At the time of the purchase, the firm secured $34 million in financing from Madison, including $29.8 million in immediate funds to buy the building. The remainder, to be provided at a later date, was allocated for proposed renovations.
Madison, in its capacity as the lender, filed the summons filed Monday in New York State Supreme Court, to initiate foreclosure proceedings over the building, which has $29.8 million loan.
Toledano reportedly named the West 16th Street building "the Devorah" after his wife.
In previous articles in The Real Deal, critics have said that Toledano is overleveraged.
Meanwhile, as previous noted, Toledano is in the process of unloading 13 of the 21 buildings — mostly walk-ups — he owns here.
The Real Deal says that he is in contract to sell 97 Second Ave. to investor Dominic Gan for $15 million. The 6-story building between Sixth Street and Fifth Street was one of the first East Village properties purchased by Toledano. (Public records show that Toledano paid $4.95 million for it in April 2014.)
[Image via Cushman & Wakefield]
Toledano, 26, 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 for a few East 12th Street residents.
In December, tenants of more than 20 buildings owned by Raphael Toledano, along with local elected officials and community organizers, went to Midtown to call out Madison Realty Capital and Signature Bank for their role in lending money to Toledano.
No post is complete without his quote about him being 'fucking rich bro'... Did he lose his quote too?
Ok. What is going here? Bought less than 3 years ago for $4.95M, selling for $15M, over 3x''s more now?
I suppose there will come a day when making short term flips and a 200% profit on EV walkups will end but until every rent stabilized apartment has vanished. Thank you Albany fucks for changing housing laws to favor real estate profits over the lives of working class citizens and their long term communities.
So the Baby Smurf Rafael Toledano isn't as rich as he says he is after all, and his panic sale pricing is proof that there's trouble in paradise. According to other news reports, he is in deep with the bank on this deal, and if he does not give them a huge return by either jacking up rents or selling at a higher price, they get their money back, or else they foreclose and he he loses all of the properties. Since Toledano doesn't have that kind of money, he is desperately trying to flip the buildings, but the prices he is asking are insane. He is asking for 300% of what he paid in order to pay off the bank, otherwise he loses the entire deal and his properties will go into foreclosure. The banks are to blame for this kind of vulture capitalism, and so is Toledano for biting off more than he can chew. He is making the same mistake so many real estate people have made before--using too much leverage and getting way in over his head--and he will probaby end up losing it all, just like they did.
And in the meantime, countless people have already lost their housing and their lives ruined because of this evil person and his relentless greed. And the "laws" permitted it.
@9:51am: Yes, but as long as there are other predatory investors out there who will pay him 300% more to buy any of his buildings, tenants continue to lose. And our neighborhood continues to lose. I wouldn't care about any of this if Toledano and his ilk were only hurting themselves.
I can just picture this little guy arguing with the Department of Health. "It's not toxic, bro!"
You guys laugh now. But this could be your president in a few decades.
No, he's still very rich. He may lose a building/company here or there, but he's still pulling seven figure returns on each of his building sales (and that money is almost certainly non-recourse).
He's going to walk away from the EV either rich as shit or rich as fuck, I'm not sure which one.
Toledano has no care about human life ..he has raped the neighborhood of small buisnessss and long time residents . There is a hot place in Hell for shady slum lords like him and Brookhill Properties
Don't forget the displacement of long term tenants due to the incoming rich kids paying double the prices normal people would pay.
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