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.