[East 5th Street buildings that were part of Raphael Toledano's portfolio]
On Friday, Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York OK'd Madison Realty Capital to replace Raphael Toledano as the property manager of 15 East Village buildings while a deal to transfer the ownership is worked out, The Real Deal reports.
Madison, the lender on the properties and secured creditor, is negotiating a deal to acquire the deeds from Toledano’s Brookhill Properties. Sources close to both firms said they have signed a term sheet outlining a deal in which Madison would pay a sum of less than $10 million, which Toledano would use to pay off other creditors.
Last month, an affiliate of Toledano's Brookhill Properties filed Chapter 11 bankruptcy protection on the portfolio of multifamily walk-ups. In 2015, Toledano purchased 28 buildings from the Tabak family for a total of $140 million.
Madison has reportedly said that Toledano owes some $140 million, including $125 million in loans against the 15 properties, plus interest and attorneys’ fees.
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