Report: Raphael Toledano completes purchase of 16-building East Village portfolio

[233-235 E. 5th St.]

Raphael Toledano’s Brook Hill Properties has completed the purchase of 16 East Village buildings from the Tabak family, paying $97 million, according to The Real Deal.

The portfolio amounts to 301 apartments and 15 retail spaces. Here are the addresses (updated this list 9/12):

• 27 St. Marks Place – 20 residential units; 2 commercial units
• 66 East 7th Street – 22 residential units; 2 commercial units
• 95 East 7th Street – 20 residential units
• 223 East 5th Street – 18 residential units
• 228 East 6th Street – 20 residential units; 2 commercial units
• 229 East 5th Street – 10 residential units
• 231 East 5th Street – 8 residential units; 2 commercial units
• 233 East 5th Street – 10 residential units
• 235 East 5th Street – 10 residential units
• 253 East 10th Street – 20 residential units; 1 commercial unit
• 323-325 East 12th Street – 37 residential units
• 327 East 12th Street – 22 residential units; 2 commercial units
• 329 East 12th Street – 24 residential units
• 334 East 9th Street – 20 residential units; 2 commercial units
• 510 East 12th Street – 20 residential units; 2 commercial units
• 514 East 12th Street – 20 residential units

The deal moved forward despite the fact that Toledano’s uncle, power broker Aaron Jungreis, is suing him. According to the Daily News, the two allegedly agreed to form a joint venture to acquire the buildings, but Toledano reportedly went behind his uncle's back to buy them himself. Jungreis accuses his nephew of being "motivated solely by greed." (This suit was settled. See update below.)

In other East Village Toledano legal action... In May, rent-regulated tenants at 444 E. 13th St. filed a lawsuit against Toledano and his Goldmark Property Management for "deplorable conditions" as well as for alleged ongoing threats and harassment.

Then in August, state officials served subpoenas on Goldmark Property Managmenet, investigating whether the company threatened tenants with police raids, evictions and the shut off of essential service, as The Real Deal put it.

Updated 11:30 a.m.

Real Estate Weekly had more details on the sale...

Toledano, who at 25 is the youngest landlord in New York City with a portfolio of this size, and Brookhill Properties are focusing on this neighborhood because of its appeal to millennials (18-35 year-olds) and the significant potential for continued growth. Toledano is currently under contract to purchase an additional 11 buildings in the East Village, West Village and Murray Hill for $55 million.

“We are committed to being a force for good in the neighborhood and providing our tenants with high-quality apartments,” Toledano said. “Our company is not just a property owner, we are members of this East Village community and look forward to partnering with local groups to show our dedication.”

Updated 12:30 p.m.

The Real Deal reports that Jungreis and Toledano have settled...

“I am glad that we were able to amicably settle with Mr. Jungreis and continue focusing on what matters – serving our tenants and asserting ourselves as the largest landlord in the East Village while continuing to better the community,” Toledano told The Real Deal.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

Report: Uncle suing nephew broker Raphael Toledano over $100 million East Village deal

[Photo from May by Stacie Joy]

Let's get right to the Daily News with the story:

Aaron Jungreis, one of the top building sales brokers in New York, is suing Raphael Toledano, his nephew, for allegedly agreeing to form a joint venture with his uncle to acquire the buildings, then going behind his back to buy them himself.

Jungreis accuses his nephew of being “motivated solely by greed” and says he mentored him in the real estate business for years and shared his network, only to be cast aside when Toledano felt he could go it alone.

The lawsuit is over a 16-building portfolio in the East Village owned by Morton Tabak & Co. (The sale has not yet hit public records.)

As for that portfolio of buildings, The Real Deal lists them as the following:

• 253 East 10th Street
• 510 East 12th Street
• 228 East 6th Street
• 329 East 12th Street
• 327 East 12th Street
• 334 East 9th Street
• 323-325 East 12th Street
• 95 East 7th Street
• 514 East 12th Street
• 27 St. Mark’s Place
• 231-233 East 5th Street
• 229 East 5th Street
• 223 East 5th Street
• 235 East 5th Street
• 66 East 7th Street.

It has been a busy legal year for Toledano. In May, rent-regulated tenants at 444 E. 13th St. filed a lawsuit against Toledano and his Goldmark Property Management for "deplorable conditions" as well as for alleged ongoing threats and harassment.

On Monday, the Daily News reported that state officials have launched an investigation into Toledano following the accusations of strong-arming tenants into giving up their rent-regulated apartments on East 13th Street.

Meanwhile, in the East Fifth Street buildings that are reportedly part of the sale, a resident claims that Toledano has already been visiting the properties even though the sales haven't been finalized. According to the resident, Toledano will introduce himself as Rafi, Ralph or Raphael.

The East Fifth Street resident also claims to have recently witnessed the following:

Arriving in a convoy of three black SUVs in the morning or evening, [Toledano] has been hanging out on the street, asking tenants if he and his entourage can enter their apartments. Others he shadows to or from their apartment house entrances with accusations that they "should not be living in rent-regulated apartments," that he has had them investigated, all the while referring to specifics on their Facebook pages.

Residents here have been in contact with GOLES and The Urban Justice Center.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Reader report: Large portfolio of East Village buildings ready to change hands

Report: State investigating East Village landlord Raphael Toledano

Report: State investigating East Village landlord Raphael Toledano

[Photo from May by Stacie Joy]

The Daily News has the story about Raphael Toledano's Goldmark Property Management:

State officials have launched an investigation into an East Village landlord accused of strong-arming tenants into giving up their rent-regulated apartments, the Daily News has learned.

The state’s tenant protection unit served subpoenas on companies controlled by landlord Raphael Toledano as part of a probe into claims of abusive behavior by his agents, including threats of eviction and the shutting off of gas and other essential services, officials said.

In May, rent-regulated tenants at 444 E. 13th St. filed a lawsuit against Goldmark for "deplorable conditions" as well as for ongoing threats and harassment. A staff attorney at the Urban Justice Center, who is representing the East 13th Street tenants, told reporters that "there are tape recorded conversations where the landlord is threatening to drop dynamite on the building and then let everyone 'figure it out themselves.'"

According to The Real Deal, Toledano bought the building for $6.1 million in January.

Jeffrey Goldman, an attorney for Toledano, denied the harassment claims.

"I have not seen him engage in any behavior or conduct that would give rise to an investigation let alone a finding of harassment,” Goldman told the Daily News.

Toledano's name surfaced earlier this month as the new owner of a 17-building parcel, most of which are in the East Village.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'