Meanwhile, the deal to sell the portfolio to Joseph Sutton, son of retail mogul Jeff Sutton, for some $145 million is also off.
All this has transpired about one month after Madison Realty Capital filed to foreclose on the package of multifamily walk-ups acquired by Toledano in 2015 from the Tabak family. (Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million.)
Per The Real Deal:
Now that the deal with Sutton is no longer happening, Toledano is looking for other suitors, sources said.
The bankruptcy filing, submitted by Brookhill-controlled entity East Village Properties LLC, would buy Toledano more time to sell the buildings and avoid foreclosure.
Toledano and Sutton declined to comment. Sources familiar with the deal said that Sutton did not want to be associated with a deal tainted with a bankruptcy filing.
According to The Real Deal, the buildings in this portfolio are: 27 St. Mark's Place, 66 E. 7th St., 514 E. 12th St., 223 E. 5th St., 229 E. 5th St., 231 E. 5th St., 233 E. 5th St., 235 E. 5th St., 228 E. 6th St., 253 E. 10th St., 323-325 E. 12th St., 327 E. 12th St., 329 E. 12th St., 334 E. 9th St. and 510 E. 12th St.
The Brookhill Properties website previously showed that the company owned 21 buildings in the East Village.
As of last evening, the Brookhill Properties website was no longer online...
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
Image via the Brookhill website
17 comments:
I hope he faces prison time also. That would be the coup-de-grace.
It couldn't happen to a more deserving creep. I hope he gets jail time - they should make an example of him b/c that might give some of the other low-life landlords/developers around here a chill.
WHITE HOUSE adviser next ?
Yeah, yeah, he's a scumbag...not that bankruptcy really means he's destroyed. What about the tenants? What happens to them in half demolished buildings with no owner?
If Rafi canlt even keep his website online, what does that say about the upkeep of the buildings? Unless you're his wife, at this point who cares if he makes any money though a bankruptcy maneuver or walks away from the deal flat broke, that's besides the point. He is putting many tenants at risk as he goes through his legal machinations. His website is down, his employees are leaving, so who is taking care of the buildings? If he's out of cash, or refuses to use whatever cash he has squirreled away to maintain the buildings, the judge should expediate the bankruptcy case and side with the lenders to give them control ASAP. Dragging this out for 12-18 months in court is bad for everyone except for Rafi the Baby Smurf, the King of Lousy Landlords.
No reality show for you!
Damn! Does this mean I can't buy real estate with nothing more than an exquisitely gelled coif and superior beard grooming? Oh well, back to Mega Millions.
I can't speak to all of the buildings but I lived in one of the Tabak buildings purchased by this guy and the vast majority of the rent stabilzed residents took the buy-outs. I don't think many people wanted to live through a multi-year gut renovation that was planned.
What a mess this continues to be. A true EV "grieve" story. What this guy has done to the EV community is scandalous.
DEAR E.V. COMMUNITY: Let's buy the buildings somehow! Creep landlords stay out!
Couldn't have happened to a creepier guy! Karma is a bitch.
Trump claimed chapter 11 four times and look where it got him.
He isn't gone yet.
He still owns and controls the buildings.
Building Supers and maintenance people were either laid off or quit.
Brookhill's down to 3 building employees to maintain the buildings now.
If they don't get paid, they'll walk.
The office may have 1 or 2 people remaining.
The gas restoration at 325 E12th Street started
but quickly stopped when the foreclosure notices were delivered.
It was turned off on May 18th, 2016.
It could be another 6 months, or more, before we can cook our food.
I am a tenant in one of these buildings.
It was a great building to live in for the past 20 years.
It has been terrible since Toledano bought the buildings.
Toledano's buying time with the bankruptcy. He could find a buyer.
He could still could walk away with a good profit.
Where's the court appointed "Receiver" who was given the buildings weeks ago?
The tenants remaining in these buildings will have to go through all of it all over again.
This was once HOME. It doesn't feel it anymore. It's like we're unwanted "squatters".
The buildings areapproximately 50% occupied.
Most of the vacant apartments were gutted but not renovated.In over a year and a half, only 3 apartment renovations at 325, 327 and 329 E12th Street are close to completion.
Out of 85 units, there are about 45 occupied.
No, I won't miss the jerk.
His life is devoted to causing havoc.
I can't wait for his face to disappear from the internet.
NEXT...
Wow one horror story after the other makes me doubt that the housing department still exist. How!!!! Does a landlord get away with withholding basic services to tennants without getting hauled to jail? As one poster said it's like (luxury, my word) squatting again.
Hey Grieve commentariat. I'm inspired by Anon 5.31. If we all got together, could we raise a community fund? Buy a building? And then another? Beat the bastards at their own game? I have $200 in loose change and a dwindling savings account. Who's with me?
Anon @ MARCH 30, 2017 AT 11:31 PM
If you don't have gas, have you made the motions to hold back rent? Since Toledano is out of cash, this will hurt him even more.
Look at this Fact Sheet
http://www.nyshcr.org/Rent/FactSheets/orafac14.pdf
As well as the comments in this EV Grieve article
http://evgrieve.com/2012/05/how-much-of-rent-discount-for-not.html
Nut beem,
12th Street Block Assoc is what we need- from E River to Union Square where the "salt" explosion/fires occurred yesterday
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