"Today's agreement stands up for all the tenants harassed and pushed out of their homes by a fraudulent landlord and the lender that financed his unlawful operation," James said in a statement. "Madison Realty Capital aided one of our city's worst landlords in his unlawful scheme, but we're holding the company to account and delivering real relief to the many victims through rent credits and housing placement."
Here's more of the background and current narrative via the AG's office:
With the financial backing of Madison Realty Capital, Toledano harassed tenants through coercive buyouts; executed illegal construction practices; and failed to provide tenants with utilities, repairs, and other necessary services.
Even with this track record, in 2015, Madison Realty loaned Toledano over $100 million to purchase a 15-building portfolio in the East Village, despite his limited experience in managing a portfolio of this size, evidence of prior tenant harassment, and plans to continue to vacate rent-stabilized tenants and renovate units in violation of law.
Attorney General James’ investigation found that Madison Realty Capital knew or should have known of Toledano’s history, that the proposed conversions were unlawful, and that the aggressive schedule for buyouts and renovations was likely to result in tenant harassment.
As a result of the loan that allowed Toledano to take over management of the East Village Properties, Toledano did exactly that — harassing hundreds of tenants, engaging in dangerous construction practices, and failing to provide basic services. In March 2017, the East Village properties filed for bankruptcy.
Under the terms of this agreement — which also resolves claims filed against Toledano’s former business entities in New York bankruptcy court — Madison Realty Capital must now take ownership of the 15 buildings in the East Village portfolio subject to $1.05 million in rent credits.
These rent credits will be shared among the remaining tenants who suffered through Toledano’s mismanagement of these properties. The owners of the buildings will also ensure placement of 10 formerly-homeless families and will adhere to tenant health and safety protections during construction there.
Under the settlement agreement with the AG's office, Madison wasn't required to admit wrongdoing.
In previous years, Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million. Experienced real-estate players raised red flags about Toledano's heavy reliance on debt.
In an interview with The Real Deal in June 2016, Toledano, then 26, made "frat-tastic boasts about his wealth," including: "I’m worth a fuckload of money, bro."
Previously on EV Grieve:
• Tenants call out Madison Realty Capital: Stop warehousing rent-regulated apartments
• Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table
Over the weekend, workers started removing the church's east-facing (back) wall in order to stabilize the site, according to the Rev. Jacqui Lewis, senior minister at the Middle Collegiate Church. (Photo below via Steven)The Fire Marshall has concluded their investigation, but we do not yet have the official written report. What we've been told is: It has been confirmed that the fire originated in the building to our north and the cause was electrical in nature.
— Rev. Jacqui Lewis, PhD (@RevJacquiLewis) December 12, 2020
In some positive news, the steeple remains intact, which is where the New York Liberty Bell had hung in the belfry. The bell appears unharmed ...We will have more to say to our community and to the press once we see the official report. In the meantime, we offer prayers of thanksgiving that there were no fatalities.
— Rev. Jacqui Lewis, PhD (@RevJacquiLewis) December 12, 2020
As work continues to stabilize @middlechurch, our engineers have found that the church’s historic “New York Liberty Bell” was not damaged during last week’s devastating fire.
— NYC Buildings (@NYC_Buildings) December 12, 2020
DOB engineers remain on site to monitor & assess the stability of the structure. pic.twitter.com/v5BPwuIUGl
Some history of the bell via the Times:Our bell will ring again, and our love is still ringing. pic.twitter.com/BLofkL4HmT
— Middle Church (@middlechurch) December 13, 2020
It is about 25 years older than the cracked Liberty Bell in Philadelphia, according to a 1959 New York Times article.Cast in Amsterdam in 1729, the bell was rung in 1735 to celebrate freedom of the press after John Peter Zenger, a German journalist, was acquitted of charges of seditious libel. He had published criticism of British tax collectors, according to the Times article.
It also was rung on the day that Representative John Lewis died in July and a week after the presidential election to celebrate "that love and justice" prevailed...
Around 9 a.m. Saturday, "something sparked up and the units that were on the scene did what they were supposed to do, which is just put some water on it," said a FDNY spokesperson who declined to give his name. The flare-up was so minor that the FDNY personnel on scene did not transmit a fire alarm, the spokesperson said.
