Showing posts with label Raphael Toledano. Show all posts
Showing posts with label Raphael Toledano. Show all posts

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...

And...

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

Thursday, May 4, 2017

East Village tenants pay landlord Raphael Toledano a visit at his Upper West Side home



Members of the Toledano Tenants Coalition (TTC) visited the Upper West Side home of Raphael Toledano last Saturday "to bid farewell to the junior speculator landlord" whom they’ve battled for the last two years, ever since he purchased more than 20 East Village buildings, according to a statement from the group.

Tenant organizations from around the city associated with Stabilizing NYC joined the protest. Some participants wore Toledano masks and carried signs that riffed on his boastful quote last summer to The Real Deal: "I'm worth a fuckload of money, bro."

There was also some dancing.



As previously reported, Madison Realty Capital has replaced the 27-year-old landlord as the property manager of 15 East Village buildings while a deal to transfer the ownership is worked out. In late March, the LLCs that Toledano used to purchase the 15 buildings in the Madison Realty portfolio filed for Chapter 11 bankruptcy.

Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million in the fall of 2015. Since then, he 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 last year for a few East 12th Street residents.

Here's more from a statement on Saturday's Toledano rally:

Tenants believe the time has come to make Mr. Toledano feel less comfortable at his home since, according to tenants, he has seen fit to do the same to them. Tenants report that Mr. Toledano has on at least two occasions refused to meet face to face with them and elected officials to discuss issues of importance to tenants, and so tenants say they are voicing their concerns directly to Mr. Toledano at his home.

[Saturday's] protesters assert that Mr Toledano has not met his obligations as a responsible landlord, forcing tenants to live in vermin-infested buildings without cooking gas and creating construction chaos as he haltingly renovates buildings.


[Photo by Nina d'Alessandro]


[Photo by Jim Markowich]

The Times reported this past Sunday that Toledano was selling off his other East Village properties that are not part of this 15-building portfolio in foreclosure. Per the Times:

[Toledano] said he was in contract with an investor to buy a $200 million portfolio of properties in the West Village, a neighborhood where he said tenants were less organized.

I kind of want to get out of the East Village walk-up business, to be honest," he said, without a hint of remorse. "There is so much scrutiny of the buyouts."

Responding to Toledano’s statement to the Times, the TTC vowed to help West Village tenants to resist him. One sign at the rally read "You can’t hide in the city, Raphael Toledano, We will find you!"


[JM]

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

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

Monday, May 1, 2017

The housing limbo of Raphael Toledano's (former) East Village tenants



The New York Times delved into Raphael Toledano's crumbling East Village real-estate empire yesterday... focusing specifically on the resnt-stabilized residents who accepted buyouts to leave their homes — but have yet to receive their payment.

When we last checked in with Toledano, Madison Realty Capital had replaced the 27-year-old landlord as the property manager of 15 East Village buildings while a deal to transfer the ownership was worked out.

Toledano planned to use $124 million worth of financing from Madison Realty Capital for buyouts and renovations.

Per the Times:

What followed was a familiar playbook: Coerce tenants to give up their valuable rent-regulated apartments with threats of eviction or offers of cash payouts, or both. Once the tenants leave, renovate the empty spaces and lease them for considerably more money. “At the end of the day, it’s a part of the business plan,” Mr. Toledano said in a telephone interview.

Then...

“He made it really clear that he was going to make it a miserable place to live,” said Jen Bekman, 47, an entrepreneur who lives in another Toledano-owned building, on East Fifth Street. She also fielded daily calls and texts from the landlord. “Sometimes he’d lose his temper. You could just tell that he was kind of volatile.”

The clock was ticking for Mr. Toledano. His deal with Madison Realty Capital gave him a year to clear out apartments, then renovate and rent them.

In the end, 140 of the 300 tenants who lived in the 15 buildings signed buyout agreements, totaling $7 million in payouts, Toledano confirmed. (Bekman received the largest payout offer — $600,000 for the $1,900-a-month, one-bedroom apartment she lived in for 25 years.)

However, by the time all the buyout offers were finalized, Toledano no longer had the money to pay his debts.

To shield himself from personal liability, Mr. Toledano had purchased each of his properties using limited liability companies. Last summer, the L.L.C.s that owned the buildings in the Madison Realty portfolio went into default and Madison stopped funding the buyouts.

So the residents who took the buyouts are in various stages of housing limbo. You can read the piece for more.

Meanwhile, Toledano has sold off other pieces of his East Village portfolio, as we've noted.

You may want to warn anyone you know who lives in the West Village.

Back to the Times:

[Toledano] said he was in contract with an investor to buy a $200 million portfolio of properties in the West Village, a neighborhood where he said tenants were less organized.

“I kind of want to get out of the East Village walk-up business, to be honest,” he said, without a hint of remorse. “There is so much scrutiny of the buyouts.”

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

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

Monday, April 24, 2017

Silverstone Property Group gets to work on buildings (previously) owned by Raphael Toledano



News broke (via The Real Deal) last week that Madison Realty Capital was replacing controversial landlord Raphael Toledano as the property manager of 15 East Village buildings while a deal to transfer the ownership was worked out.

A judge of the U.S. Bankruptcy Court for the Southern District of New York directed all forthcoming rents and managing rights to Silverstone Property Group, the property management arm of Madison.

Per The Real Deal:

As part of the order, the judge prohibited Silverstone from renovating the vacant apartments for the time being aside from emergency repairs.

“Through its initial visits with the properties, [Silverstone] has determined that many of the issues are related to the prior manager’s elimination of staff from the properties, which in [Silverstone’s] opinion are crucial to the smooth operation of the properties,” Silverstone managing director Phillip Lavoie wrote in a court document.

An EVG reader shared the above photo from a building on 12th Street... showing a flyer in which Silverstone reps were to inspect each apartment. "Each inspection will take around approximately 15 minutes. This inspection is to address and identify all necessary repairs within each apartment." Similar flyers were found on the other former Toledano buildings. (We did not hear about how all this inspection business went.)

Silverstone has been accused in the past of predatory practices, allegedly cutting the gas to a building in Chinatown after elderly rent-stabilized residents turned down buyout offers, according to DNAinfo. (The tenants eventually won the right to have the gas restored.)

Madison has reportedly said that Toledano owes some $140 million, including $125 million in loans against the 15 properties, plus interest and attorneys’ fees.

Meanwhile, this message is on the front door of a building on Fifth Street ... next to the five buildings that Madison has taken over from Toledano...



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

Tuesday, April 18, 2017

Report: Madison Realty Capital now managing Raphael Toledano's East Village portfolio


[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

Thursday, March 30, 2017

Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

On Tuesday, an affiliate of Raphael Toledano's Brookhill Properties filed Chapter 11 bankruptcy protection on a 15-building East Village portfolio, The Real Deal reports.

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

Tuesday, February 21, 2017

[Updated] Foreclosure notice arrives on Raphael Toledano-owned building on 12th Street


[Click for more detail]

A tipster shared the above photo... a foreclosure notice arrived yesterday on the door of 514 E. 12th St., one of the East Village properties owned by Raphael Toledano.

Earlier this month, Madison Realty Capital reportedly moved to foreclose on one of Toledano’s major EV portfolios, 15 buildings total, sources told The Real Deal.

From that article published Feb. 6:

Just three days before Madison filed to foreclose on the buildings, sources said Joseph Sutton, son of retail mogul Jeff Sutton, signed a hard contract to buy the buildings from Toledano for about $145 million.

Madison, according to documents filed in New York State Supreme Court late last week, claims Toledano, the founder of Brookhill Properties, owes the firm about $140 million, which includes $125 million in loans against 15 properties, plus interest and attorneys’ fees.

Sources close to Toledano said that after he defaulted last year, Madison waited months to initiate foreclosure proceedings, allowing time for him to find a buyer for the properties.

The address on the foreclosure notice matches that of Madison Realty Capital.

The notice reads in part:

The dwelling where your apartment is located is the subject of a foreclosure proceeding. If you have a lease, are not the owner of the residence, and the lease requires payment of rent that at the time it was entered into was not substantially less than the fair market rent for the property, you may be entitled to remain in occupancy for the remainder of your lease term.

And...

All rent-stabilized and rent-controlled tenants are protected under the rent regulations with respect to eviction and lease renewals. These rights are unaffected by a building entering foreclosure status.

It's not known at the moment how many other Toledano properties received similar foreclosure notices.

The Toledano-owned 97 Second Ave. will be auctioned off next week.

Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million in the fall of 2015. Toledano has been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust.

Updated 1 p.m.

A resident said that that packets of foreclosure legalese arrived on the doorstep outside one of Toledano's building on Fifth Street...


Thursday, February 16, 2017

Raphael Toledano-owned 97 2nd Ave. is on the auction block



The 6-story, 10-unit building at 97 Second Ave. between Sixth Street and Fifth Street was one of the first East Village properties purchased by Raphael Toledano.

Now the building, which has a complicated recent history (there was a lawsuit in 2014 involving Toledano and another broker), is on the auction block.

Here are the details:

On the 28th day of February, 2017 commencing at 10:30 a.m. Eastern Standard Time, at Polsinelli PC, 600 Third Avenue, 42nd Fl., New York, NY 10016, Lefko Funding LLC (Secured Party) will sell the following property by public auction to the highest qualified bidder: 100% of the membership interests in 97 2nd LLC, a New York limited liability company, which owns real property consisting of apartments and a first floor commercial space, in New York, NY with an address of 97 Second Avenue, New York, NY 10003.

Secured Party reserves the right to reject all bids and terminate or adjourn the sale to another time or place, or to effectuate a private sale instead of a public sale, without further publication, and further reserves the right to bid for the collateral at the sale and to credit bid by applying some or all of its secured debt to the purchase price. Interested parties who would like additional information concerning the items to be sold at the sale and the terms and conditions of the sale, including the eligibility requirements to be a qualified bidder.

Public records show that Toledano paid $4.95 million for it in April 2014.

In 2014, Douglas Pratt, whose family had operated the longtime laundromat here since the early 1970s as well as owned the building, said that they needed to sell "for a host of personal and business reasons."

The retail space is now home to Hou Yi Hot Pot. They have a lease through February 2030.

Earlier this month news broke that, facing foreclosure, Toledano was selling off most of his East Village properties.

Tuesday, February 7, 2017

Report: Raphael Toledano selling major EV portfolio; foreclosure proceedings underway

Raphael Toledano’s East Village empire continues to crumble. As The Real Deal reports, Toledano is selling a chunk of his properties to Joseph Sutton, son of retail mogul Jeff Sutton, for some $145 million.

This contract comes as Madison Realty Capital has moved to foreclose on one of Toledano's major portfolios.

Per The Real Deal:

Madison, according to documents filed in New York State Supreme Court late last week, claims Toledano, the founder of Brookhill Properties, owes the firm about $140 million, which includes $125 million in loans against 15 properties, plus interest and attorneys’ fees.

Sources close to Toledano said that after he defaulted last year, Madison waited months to initiate foreclosure proceedings, allowing time for him to find a buyer for the properties.

It's unclear just how many EV buildings Sutton is purchasing. (Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million.)

The Brookhill Properties website previously showed that the company owned 21 buildings in the East Village. As if this morning it shows 18 properties. If this deal goes through, then the number will presumably be in the single digits.

Last September, he reportedly sold 221 E. 10th St. and 58 St. Mark’s Place. There was also a listing for 444 E. 13th St. (That address is no longer on the Cushman & Wakefield website.)

As market observers have told The Real Deal, Toledano was believed to be in way over his head.

Toledano has also been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust.

Image via the Brookhill website

Tuesday, January 31, 2017

Report: East Village landlord Raphael Toledano close to losing prize Chelsea building

Raphael Toledano, who has had a tumultuous few years as an East Village landlord, is facing foreclosure proceedings on a Chelsea rental, according to The Real Deal.

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.

Wednesday, December 7, 2016

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders



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 the controversial landlord.

The group, including a large number of East Village residents, first convened yesterday morning outside Madison Realty Capital headquarters, 825 Third Ave., then, accompanied by members of the Rude Mechanical Orchestra, marched to the Signature Bank headquarters, 565 Fifth Ave.





Here's part of a statement issued via the Cooper Square Committee:

In September of 2015, Madison Realty Capital, a determined private equity lender, issued Toledano a $124 mil mortgage to buy 17 buildings throughout the East Village and Chelsea area.

News coverage (The Real Deal) has documented the risky lending patterns that Madison Realty Capital maintains. The Real Deal quoted a veteran real estate investor saying that MRC’s $124 million loan to Toledano left him “over leveraged,” and that Toledano is now “pushing up rents to pay off a high mortgage.”

The mortgages Madison Realty Capital issued Toledano went as far as to require him to spend $2 mil of the loan exclusively on tenant buyouts or renovations – practices which often trigger huge rent increases. Tenants in Toledano’s buildings have faced alleged harassment and extensive building issues ever since he took ownership. Signature Bank played a role here as well, as they collateralize Madison Realty Capital in the lending they do.



And here are prepared statements from elected local officials...

State Assemblymember Deborah Glick: “Raphael Toledano has proven to be an unscrupulous and harassing landlord who takes financial risks and is often over-leveraged while seeking to make an enormous short-term profit off a group of buildings at the expense of tenant’s rights. Madison Realty Capital, and their collateralized backer, Signature Bank, show a disregard for stable communities by funding these mortgages for Toledano. We urge them to stop funding these projects which inevitably result in tenant harassment."

State Sen. Brad Hoylman: "Madison Realty needs to take responsibility for the unscrupulous, anti-tenant actions of the developers it bankrolls. Madison is greasing the skids for predatory landlords in my district who systematically harass tenants out of their homes. I’m proud to stand with the Toledano Tenants Coalition, Cooper Square Committee, and the Rude Mechanical Orchestra in calling on Madison Realty to pull the plug on Brookhill Properties."

Toledano is reportedly trying to sell a large number of his East Village properties.

Photos courtesy of the Cooper Square Committee

Monday, December 5, 2016

Report: Raphael Toledano selling more East Village properties


[Part of the East 5th Street buildings owned by Raphael Toledano]

As we first reported in September, Raphael Toledano's Brookhill Properties was selling more than a third of its East Village properties.

Now comes word via The Real Deal that Toledano is expanding the scope of the sale to 13 East Village buildings. (He acquired the 13 buildings through two separate deals with the Tabak family last year, paying $140 million to acquire 28 buildings in total.)

According to The Real Deal, these are the buildings for sale:

• 514 E. 12th St.
• 510 E. 12th St.
• 251 E. 10th St.
• 253 E. 10th St.
• 332 E. Ninth St.
• 334 E. Ninth St.
• 27 St. Mark’s Place
• 66 E. Seventh St.
• 223 E. Fifth St.
• 229 E. Fifth St.
• 231 E. Fifth St.
• 233 E. Fifth St.
• 235 E. Fifth St.

Records show that Toledano paid a combined $76 million for the 13 buildings he’s shopping. Now, the price tag for these 13 buildings, which feature 206 apartments and 12 retail spaces, is $160 million, a number sources told The Real Deal was ambitious.

The Brookhill Properties website shows that the company owns 21 buildings in the East Village. However, that number is starting to decrease.

In September, he reportedly sold 221 E. 10th St. and 58 St. Mark’s Place. There was also a listing for 444 E. 13th St. (That address is no longer on the Cushman & Wakefield website.)

In an interview published by The Real Deal back in June, Toledano said that he will keep his core East Village assets "for eternity."

As previously reported, Toledano, 26, has been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust. In May, 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.

Wednesday, November 23, 2016

Frozen: A Raphael Toledano-style turkey dinner on 12th Street for residents without cooking gas


[Image via Facebook]

Residents at the Raphael Toledano-owned 325 E. 12th St. say they have been without gas for cooking for more than six months now. Yesterday morning, some of the tenants, along with other members of the Toledano Tenant Coalition, held a protest and "Toledano-Style Turkey Dinner" — featuring Banquet frozen turkey dinners — here between First Avenue and Second Avenue.

A handful of tenants announced that they are taking the under-investigation landlord to court. Here's more via an advisory from the Cooper Square Committee:

Now eight of the tenants are fighting Raphael Toledano in court for an order to restore the gas — one that his lawyers are vehemently resisting. While Mr. Toledano and his agents are likely enjoying warm and cozy kitchens filled with the aroma of holiday cooking, the kitchens of 325 East 12th Street will be cold & empty… except, perhaps, for the echo of Mr. Toledano, spouting empty promises of gas restoration and better relations with his tenants. Mr. Toledano has refused to meet face to face with tenants and elected officials on two occasions and opted to send his legal team (Belkin Burden Wenig & Goldman, LLP) instead.

And a statement:

"The Toledano Tenant Coalition believes that Mr. Toledano continues to harass tenants by unreasonable non-renewal of leases and through slow, poorly managed building construction designed to make tenant’s homes unlivable. The coalition also asserts that Mr. Toledano has irresponsibly forced both stabilized and market rate tenants to live for months without cooking gas in buildings overrun with vermin. The coalition remains committed to ending what they see as Mr. Toledano’s campaign against the tenants that call his buildings home."

Sen. Brad Hoylman also attended yesterday's protest...


Bedford + Bowery has more on yesterday's Toledano-turkey gathering here.

Back in August, Toledano’s Brookhill Properties held a poorly received ice cream social for its residents, including the 12th Street tenants without gas for cooking. At the time, a Toledano spokesperson told The Real Deal that it was up to Con Ed and the city to address the situation. However, a Con Ed rep said that the shutdown at No. 325 "was prompted by an internal gas leak at the 12th Street building and that the company can’t restore service until Toledano makes necessary repairs."

Toledano, who told a reporter for The Real Deal in June that he's "worth a fuckload of money, bro," has been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust. In May, 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 is currently selling several buildings from his East Village portfolio.

Tuesday, September 13, 2016

Raphael Toledano is selling 444 E. 13th St.


[Photo at No. 444 from May 2015 by Stacie Joy]

Raphael Toledano of Brookhill Properties has put another of his East Village buildings on the block.

As noted last week, Toledano is in the process of selling multiple EV properties.

Now the latest address for sale is 444 E. 13th St. between Avenue A and First Avenue.

First, to the 444 listing at Cushman & Wakefield:

The building consists of a vacant ground floor space with 16 apartments above. Of the 16 residential units, all are subject to rent stabilization. Eight units are renovated with condo-level finishes that include wide plank wood floors, white marble bathrooms, re-finished exposed brick, gray washed stained wood cabinetry, and stainless steel appliances. The average in-place rent is approximately $70 per square foot which is below market. The newly renovated ground floor space is currently vacant.

The building is located less than a block from the 1st Avenue L train stop and within close proximity to neighborhood hot spots such as Hearth and The Redhead. Additionally, the building is less than a block from 500 East 14th Street where Extell is developing a large mixed-use condo building with over 40,000 SF of retail that will drive long term foot traffic.

The asking price is $9.9 million. Toledano bought the building for $6.1 million in January 2015, per public records.

And this was the address where many people first heard about the 26-year-old Toledano. In the spring of 2015, rent-regulated tenants at No. 444 accused Toledano, and a management company he reportedly hired (then later fired), of harassment and intimidation.

There are tape recorded conversations where a rep for Goldmark Property Management reportedly said, among other things to a rent-stabilized tenant: "I'm here, really, to help you. Because if it were up to the owners, they would just drop dynamite on the whole building and everyone would figure it out."

(The Times published the audio recordings here... Gothamist posted them here.)

Back in May, Toledano agreed to pay a little more than $1 million to settle claims that he harassed the tenants, according to The Real Deal. The Times reported that most of the the tenants are "low-wage workers of Mexican descent who pay modest rents for the neighborhood and have lived in their building for decades."

In the past year, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million.

The Brookhill Properties website shows that the company owns 21 buildings in the East Village. Of those, 9 are now for sale:

• 27 St. Mark's Place — $16.5 million
• 66 E. Seventh St. — $12 million
• 253 E. 10th St. — $11 million
• 510 and 514 E. 12th St. — $24.5 million (must be purchased together)
• 97 Second Ave. (bids now being accepted)
• 221 E. 10th St. and 58 St. Mark’s Place (part of a four-building portfolio with 2 Kips Bay addresses asking $36 million)
• 444 E. 13th St. — $9.9 million

Experienced real-estate players have raised red flags about Toledano's heavy reliance on debt, per The Real Deal.

Previously on EV Grieve:
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

Thursday, September 8, 2016

Raphael Toledano is selling 5 more East Village buildings



Yesterday brought word that Raphael Toledano's Brookhill Properties is selling two of his East Village properties — 221 E. 10th St. and 58 St. Mark’s Place — as part of a four-building deal worth $36 million.

The selling spree continues. Massey Knakal has listed five more of Toledano's properties, which can be bought separately or as a $64 million collection.

The buildings and their asking price, per the listing:

• 27 St. Mark's Place — $16.5 million
• 66 E. Seventh St. — $12 million
• 253 E. 10th St. — $11 million
• 510 and 514 E. 12th St. — $24.5 million (must be purchased together)

The five buildings represent 102 residential units and seven commercial units.

All five of the addresses were among those in the 16-building portfolio that Toledano purchased from the Tabak family, paying $97 million in September 2015. (In the past year, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million.)

Massey Knakal is also accepting offers on one of Toledano's first East Village properties — 97 Second Ave.

The Brookhill Properties website shows that the company owns 21 buildings in the East Village.

In an interview published by The Real Deal in June, in which Toledano boasted that he's "worth a fuckload of money, bro," the developer and aspiring shoe designer said that he will keep his core East Village assets "for eternity."

Experienced real-estate players have raised red flags about Toledano's heavy reliance on debt, per The Real Deal.

Toledano has been accused of a variety of predatory practices. In addition, 20 of his buildings were tested for toxic levels of dust. In May, 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.

Wednesday, September 7, 2016

Report: Raphael Toledano sells 2 more of his East Village properties


[File photo of 58 St. Mark's Place]

Raphael Toledano's Brookhill Properties is in contract to sell two of his East Village buildings, according to The Real Deal.

Renaissance Realty Group, a Midwood-based investment firm led by Adir Cohen, is buying a pair of East Village properties at 221 East 10th Street and 58 St. Mark’s Place for $22.5 million. The sales would represent a sizable increase in value – from $2.95 million and $3.8 million in November 2015 to $10 million and $12.5 million respectively, according to sources and property records.

The controversial Toledano, who has been accused of allegedly harassing his tenants and other predatory practices, is reportedly selling other East Village properties. (The Real Deal noted this back in July.) This past Thursday, we noted that he also put 97 Second Ave on the sales block.

Hakata Hot Pot and Sushi Lounge, housed in the retail spaces at 58 St. Mark's Place between First Avenue and Second Avenue, closed at the end of February. In a message on Facebook, the owners said that they had lost their lease. (Hakata Hot Pot combined with sister restaurant Zen 6 the next block to the west at 31 St. Mark's Place.)

Both 58 St. Mark's Place and 221 E. 10th St., which is between First Avenue and Second Avenue, were among Toledano's properties reportedly tested for toxic levels of lead.

The Real Deal reports that Toledano likely isn't through dealing.

Toledano is looking to sell more of his East Village-centric holdings, including a portion of a separate 17-building, $97 million portfolio he bought from the Tabaks in September 2015. Market observers noted at the time that the price was an incredible bargain, though Toledano is also said to be over-leveraged.

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

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Thursday, September 1, 2016

Raphael Toledano selling 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 on the market.

Cushman & Wakefield has the listing. Here's the pitch:

The building consists of a ground floor retail space currently leased to a restaurant until February 2030 with 10 residential units.

The restaurant pays $105 per square foot which is slightly below market and reimburses for 50% of the increases in the real estate taxes over base year 2015. The FM residential units have recently undergone extensive renovations and feature high ceilings, washers and dryers, dishwashers, wide plank wood flooring, and stainless steel appliances. Four units feature private access to the rooftop or a balcony which command a premium in rent. The building has also been outfitted with a new video intercom system and security cameras. This is a rare opportunity to acquire a high cash flowing, recently renovated mixed-use building in the heart of the East Village.

There isn't a listing price: Potential buyers need to submit offers. Public records show that Toledano paid $4.95 million for it in April 2014.

In April 2014, Douglas Pratt, whose family operated the longtime laundromat here since the early 1970s as well as owned the building, said that they needed to sell "for a host of personal and business reasons."

The retail space is now home to Hou Yi Hot Pot.

In July, The Real Deal reported that the controversial Toledano was aiming to sell six East Village buildings less than a year after buying them.

Image via Cushman & Wakefield

Thursday, July 14, 2016

[Updated] Raphael Toledano is now funding the Creative Little Garden on 6th Street

Via the EVG inbox...

Raphael Toledano, President of Brookhill Properties, LLC, a premier New York based real estate investment company, is pleased to announce its funding and participation in the maintenance and upkeep of the Creative Little Garden, located at 530 E. 6th Street between Avenues A and B.

Since 1982, the Garden has been a sanctuary of peace for the neighborhood and is considered by East Villagers and New Yorker’s alike to be their “community backyard” garden. Members collaborate on the landscaping of the garden, but there are no plots tended by individual gardeners. By doing this, the space has been able to become the tranquil oasis that many recognize it is today.

“We are happy to be giving back to the community in a way that helps maintain a peaceful and safe space for so many East Village’s residents and visitors,” said Courtney Knopf, Executive Vice President at Brookhill Properties. “By contributing to the Creative Little Garden, Raphael Toledano and Brookhill Properties hope to promote a greater appreciation for the environment as well as a close and supportive community.”

The Creative Little Garden is funded solely by contributions and dues paid by their members. There are expenses necessary for the maintenance of the space, but there is no paid staff. The space operates under the jurisdiction of the NYC Parks Department with help specifically from the Greenthumb program and the NYC Council on the Environment.

In his short time as a landlord in the East Village, the 26-year-old Toledano has made headlines in media outlets citywide for alleged harassment and intimidation of tenants, for which he is reportedly under state investigation at 444 E. 13th St. Local elected officials have also blasted Toledano for unsafe living conditions after the the City’s Department of Health and Mental Hygiene found elevated lead levels in the common areas of three of his buildings.

Toledano is the latest controversial East Village landlord to announce programs intended to give back to the neighborhood. Back in the spring, Icon Realty donated empty retail spaces for Celebrity Catwalk to hold adoption and fundraising events and unveiled plans for public art at several of its properties.

Updated 7/17

Via the comments...

The Creative Little Garden said...
There definitely have been no donations in the past two months to the garden. The press release reported in this article was dated Tuesday last week, and I learned about it late last night. I've been hunting around the internet today, and have found seemingly old, but vague, claims that Toledano has donated to the garden in the past. If true, it was a terrible mistake. Toledano does not represent the values of the Creative Little Garden. Franciose's ashes are there, and she would shoot rose thorns at him.

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

Report: State investigating East Village landlord Raphael Toledano

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

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

More about alleged harassment and landlord visits via Brookhill Properties

In op-ed, Raphael Toledano says that he wants 'to make the East Village a better place'

Report: East Village landlord Raphael Toledano allegedly misrepresented himself as a lawyer

The Villager looks at landlord Raphael Toledano's criminal past

An open letter to landlord Raphael Toledano from the Toledano Tenants Coalition

Report: Management company sues Raphael Toledano for backing out of $130 million loan

Ongoing concerns about demolition work and elevated lead levels in Toledano-owned buildings

Friday, July 8, 2016

Report: Raphael Toledano selling 6 of his East Village buildings

The Real Deal is reporting that controversial landlord Raphael Toledano is aiming to sell six East Village buildings less than a year after buying them.

Toledano, who has been accused of allegedly harassing his tenants and other predatory practices, bought a 16-building portfolio last September from the Tabak family for $97 million.

Per The Real Deal:

To acquire the portfolio, Toledano took out two mortgages from Madison Realty Capital totaling $124 million for the acquisition as well as planned renovations. The mortgages were an example of multiple financings that led experienced real estate players to describe Toledano as overleveraged.

The six walk-ups – which include 27 St. Mark’s Place and 66 E. Seventh St. – are expected to fetch north of $50 million, sources say. (The article doesn't list the other four buildings.)

No. 27 was home to The Sock Man before a rent hike forced him to close at this location. No. 66 was home to Barbara Feinman Millinery, which also had to relocate.

However, as The Real Deal notes, the landlord isn't giving up on the neighborhood:

Toledano is in the process of buying 11 East Village buildings for a combined $43 million — also from the Tabaks.

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

Report: Residents at 444 E. 13th St. will receive a $1 million settlement over claims of harassment by Raphael Toledano

Report: State investigating East Village landlord Raphael Toledano

Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

Wednesday, June 22, 2016

Report: Steve Croman case pushed back to September


[Photo via a Croman tenant]

Landlord Steve Croman appeared in Manhattan Supreme Court yesterday. Croman, who owns more buildings in the East Village than any other landlord, was hit last month with a 20-count indictment on charges including grand larceny and filing false documents.

As The Lo-Down reported, Supreme Court Justice Jill Konviser adjourned the hearing until Sept. 20. Croman's high-powered defense lawyer, Ben Brafman, said that they were close on a plea deal, according to the Post.

A handful of Croman tenants were on hand to greet their landlord at the courthouse.

Per The Lo-Down:

Tamalyn Miller, a Croman Tenant at 521 East 5th St., said that even though Croman’s case was pushed back, she’s happy. “The court case may go on and on,” she said, but Croman’s reputation is forever tarnished. “When we were going through this in 2009, 2010, nobody would listen to us,” she added.

Meanwhile, across the street yesterday, The Lo-Down reported that another controversial East Village landlord, Raphael Toledano, was in New York City Housing Court for civil and criminal contempt. He reportedly was there after failing to pay a settlement to tenants at 444 E 13th St.