Tuesday, August 8, 2017

More legal drama with Raphael Toledano and 97 2nd Ave.

The 6-story building at 97 Second Ave. between Sixth Street and Fifth Street was one of the first East Village properties purchased by Raphael Toledano, who would later buy several portfolios of buildings.

Now the building, which has a complicated recent history (there was a lawsuit in 2014 involving Toledano and another broker), is involved in more legal drama.

The Commercial Observer breaks it down:

Landlord Raphael Toledano is seeking Chapter 11 bankruptcy protection for an East Village walk-up building, which he says Delshah Capital’s Michael Shah has “commandeered,” according to a filing in the United States Bankruptcy Court for the Eastern District of New York...


On July 21, Delshah Capital announced the “acquisition of a defaulted note encumbering the property” at 97 Second Avenue. Delshah said in a news release that day, “Shortly after acquiring the defaulted senior note, Delshah worked directly with the building’s now former owner to enable them to recoup their capital and to take possession of the property at 30 percent below market value.”

Public records show that Toledano paid $4.95 million for it in April 2014. Toledano said in the bankruptcy protection filing that the property is valued at $15.1 million, per the Commercial Observer.

Previously on EV Grieve:
Raphael Toledano-owned 97 2nd Ave. is on the auction block


sophocles said...

First Officer: Captain, they've surrounded the building. The bank accounts are frozen. There are no more investors.
Capt. Toledano: Where's the boatload of money?
First Officer: It sank Captain!
Capt. Toledano: Have you tried the Minty X bags?
First officer: They have no effect on the bankers, Sir.
Capt. Toledano: Sh*t.

Anonymous said...

"30 percent below market value.” These are the same people who have inflated property "values" in the first place, this pyramid scheme which is our neighborhood will only benefit those at the apex.

Anonymous said...

It's just another illegal AirBNB for the moment, just like 99 Second Avenue. Complaints were filed about 99. Both of these buildings are basically problematic. 99, years ago, housed a brothel. 97 & 99 have both been neglected and house a transient population. The infrastructure of these buildings are probably rife with problems and violations.

Anonymous said...

Worth $15.1 million? Only in his deluded dreams. Why does this creep Toledano think everything he touches suddenly turns into gold?

Anonymous said...

Sophocles - Funny ! ( 1st comment )

Giovanni said...

So is every single property that Rafi owns going into bankruptcy, or is it just the ones he doesn't live in? This guy is the Martin Shkreli of real estate, and not early as attractive. Pass the Charmin. What a shit show.