444 E. 13th St. is on the auction block

444 E. 13th St., a residential building between Avenue A and First Avenue, is available via an auction starting Monday. 

According to the listing, the opening bid is $1.3 million. 

Here's more... 

... the property is a six-story, 17-unit mixed-use walk-up building totaling 12,384 square feet. Eight of the 16 residential units are Free Market, while the remaining eight are Rent Stabilized. The units consist of a mix between one-bedrooms (4), two-bedrooms (9), and three bedrooms (3) apartments. The commercial space is currently vacant and is approximately 812 square feet, with a full basement space featuring 8.5-foot ceiling heights. 

This was the first East Village building that disgraced landlord Raphael Toledano purchased, paying $6.1 million in January 2015. 

In the spring of 2015, rent-regulated tenants at 444 accused Toledano and a management company he hired of harassment and intimidation. A staff attorney at the Urban Justice Center, who represented the 13th Street tenants, told reporters during a rally outside the building in May 2015 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.'"

In 2015, Toledano agreed to pay more than $1 million to settle the harassment claims.

In February 2022, New York Attorney General Letitia James announced a court victory against Toledano. An order by the New York Supreme Court barred him from engaging in any New York real-estate business activity for at least five years, at which point he can petition the court for re-entrance.

In May 2021, Madison Realty Capital closed on Toledano's bankrupt East Village portfolio. Toledano had received $124 million in cash and lines of credit from MRC to finance his $97 million purchase of the buildings. 

Toledano, who was in his mid-20s at the time, purchased 28 buildings in two separate portfolios from the Tabak family for $140 million in 2015. Experienced real-estate players raised red flags about Toledano's heavy reliance on debt.  

Previously on EV Grieve:

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

Week in Grieview

Posts this past week included (with a reader pic of the ConEd sky the other morning)... 

• RIP Hanne 'H7L' Lauridsen (Friday) 

• Thayer is opening a bookstore and cafe at 99 Avenue B (Monday) 

• A new I Am a Rent-Stabilized Tenant (Wednesday) 

• Notorious East Village landlord Raphael Toledano faces 5-year real-estate ban (Tuesday) 

• Brindle Room is making an East Village return this spring in new 11th Street home (Wednesday) 

• A reminder to keep Two Bridge's Diner in your dining plans (Tuesday) 

• Reader report: USA Super Stores (U-S-A!) coming to the former Duane Reade on 3rd Avenue and 10th Street (Thursday) 

• A look at the B Bar & Grill demolition on the Bowery (Thursday) 

• Gallery Watch: 'Falling Through Flatland' by Chris Hood at Lyles & King (Tuesday) 

• Astor Place Wegmans watch, automatic sliding doors edition (Tuesday) 

• The Bronx Brewery East Village opens (Friday) 

• As the bank branches turn on 2nd Avenue (Thursday) 

• Local photographer opens door of former Tut at 189 E. 3rd St. (Wednesday) 

• Now Yoga moving to online-only classes next month (Wednesday) 

• Openings: A trio of quick-serve vegan options (Monday) 

• Enchantments is ready to cast a spell in new home on Avenue B (Tuesday) 

• Pizza Girls coming soon to Avenue B (Monday)

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Notorious East Village landlord Raphael Toledano faces 5-year real-estate ban

[5th Street buildings that were part of Raphael Toledano's portfolio] 

New York Attorney General Letitia James announced a court victory yesterday against notorious East Village landlord Raphael Toledano. 

An order by the New York Supreme Court bars Toledano from engaging in any New York real-estate business activity for at least five years, at which point he can petition the court for re-entrance.

Per a release from the AG's office:

This decision comes after Toledano repeatedly violated a 2019 agreement with the Office of the Attorney General (OAG) that required him to stop harassing New York City tenants and stop engaging in illegal and predatory real-estate practices. 

"New York tenants can breathe more easily knowing that Rafi Toledano is no longer in the real estate business," said James. "Through his deceptive and illegal actions, Toledano caused incredible pain and suffering to hundreds of vulnerable families, who are still feeling the effects of his harassment today. Every New Yorker deserves to live in a safe, decent home free of abuse and fear."

Here's some of what James found from her previous investigation:

" ... established that Toledano engaged in a pattern of fraudulent and illegal conduct throughout his work as a landlord and real estate developer. Toledano harassed tenants in the East Village through coercive buyouts and illegal construction practices, and failed to provide his rent-regulated tenants with utilities, repairs, and other necessary services. 

Toledano also engaged in deceptive business practices in his real-estate transactions, including repeatedly and persistently misrepresenting himself as a lawyer and advertising apartments with three or four bedrooms, when legally the apartment could have one or two bedrooms only."

The AG's office outlined how Toledano violated his 2019 agreement: 

• Failing to disclose his real-estate business activities to the independent monitor or to get the monitor's approval for further deals 
• Diverting funds from a reserve account established by the agreement 
• Failing to make penalty payments (other than initial payments totaling $520,000) 
• Failing to maintain his properties in a manner that complied with applicable laws and protected tenants' rights, health, and safety.

It's not immediately clear how many properties Toledano still owns. 

Last May, Madison Realty Capital (MRC) closed on Toledano's bankrupt East Village portfolio. Toledano had received $124 million in cash and lines of credit from MRC to finance his $97 million purchase of the buildings. 

Toledano purchased 28 buildings in two separate portfolios from the Tabak family for a total of $140 million in 2015. 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

Delivery app biz Getir gets home at 97 2nd Ave.

The Istanbul-based Getir, the "ultrafast grocery delivery company," has set up a distribution outpost at 97 Second Ave. between Fifth Street and Sixth Street. (Thanks to Steven for the pic!) 

Getir launched its NYC app service last month and plans to expand to more neighborhoods in the year ahead. 

Here's some blah-blah info about them via their arrival missive:

The company revolutionized last-mile delivery to customers with its 10-minute grocery delivery proposition, offering approximately 2,000 everyday items from chocolate to soft drinks, dairy to cleaning materials, and chips to pet food. Getir was founded in 2015 as the world's first ultrafast grocery delivery service in Istanbul and has grown rapidly in recent years. 

Getir joins Gorillas and Buyk in using EV space as outposts... and there are others in NYC, like 1520, Fridge No More and JOKR. 

In November, The New York Times reported on this app-based speedy delivery world. 

Superfast grocery companies have their fans. Nick O'Keefe, a construction project manager who lives in the East Village of Manhattan, signed up for JOKR and Fridge No More in August and now says he may never go back to the supermarket. "The convenience of it far outweighs anything else," he said. "It's the future." 

But the new services have drawn criticism. One concern is that they could siphon business away from local stores in a city where running to the corner bodega when you run out of orange juice or milk has long been a part of daily life. Some people also worry that online grocers will send more deliverers onto streets already crowded with food app workers racing to deliver takeout orders while they are still hot, or at least warm. 

And!

[Now-former Manhattan Borough President] Gale Brewer questioned whether companies were pushing the need for speed too far. "Who the hell needs an apple in 15 minutes?" she said. "If you want something in 15 minutes, go to the store."

Getir might not necessarily be in this space long-term. The six-story building, notable for being the source of a legal tussle between Raphael "I will bury you" Toledano and developer Michael Shah, has been on the sales market for nearly three years. The storefront previously housed some hot pot.

It takes a court order to clean out the long-empty 89 1st Ave.

The long-empty lot at 89 First Ave. between Fifth Street and Sixth Street has been cleared of the weeds, mushy cardboard boxes and other discarded items that have turned the space into a paradise for rats.

In the spring, a nearby tenant told us that "the rat situation in the courtyards behind the building is dire." Some surveillance signage went up along the fence, though that didn't deter anyone, such as a nearby business, from using the space as a dump.

Apparently, it took a court order to clean out the lot...  legal documents affixed to the fence state that the city has a legal right to enter the property "for the purpose of inspecting and abating the nuisance existing thereupon in violation of the health and safety requirements of the New York City health code."

Some recent history here. In May 2020, another set of new building permits were filed with the city for the lot. According to the DOB, the proposed building is six floors with eight residential units and ground-floor retail. In total, the structure is 8,183 square feet. The plans were disapproved last fall.

This is the second time in recent years that plans have been filed for a new building for the address. In 2017, the city never approved plans for a similar-sized structure — eight units, six floors.

As previously reported, Florence Toledano was the owner of this lot. In 2013, public records show that the deed for the property was transferred from the Florence Toledano Living Trust to 89 First Avenue LLC. The DOB permit lists Daniel Toledano as the manager of the property. (We do not know the relationship between Daniel Toledano and Florence Toledano. One reader said Daniel is a nephew of Florence.)

Daniel Toledano is still listed as the property owner and developer of the project. (Toledano is also listed as the lot owner that housed the 2Bn2C sculpture garden at 231 E. Second St. between Avenue B and Avenue C.)

In December 2017, workers dismantled the sculpture fence that lined the First Avenue lot for years (since the late 1980s, per one estimate). The fence was created at the former Gas Station (aka Art Gallery Space 2B) on Avenue B and Second Street by Claire Kalemkeris and Johnny Swing in collaboration with Linus Coraggio.

Previously on EV Grieve:
• Will this long-empty lot on 1st Avenue yield affordable housing?

• Drilling and soil testing commence at the long-empty lot at 89 1st Ave.

• Workers remove the sculpture fence and prep lot at 89 1st Ave.

• Reader report: It's 'rats galore' at this long-empty 1st Avenue lot

• 'Rats galore,' the video sequel

EVG Etc.: The fate of Raphael Toledano's bankrupt EV portfolio; the free fitness classes on Avenue B

• In $153 million deal, Madison Realty Capital closes on Raphael Toledano's bankrupt East Village portfolio (The Real Deal ... previously on EVG) 

• A long read on the reconstruction plans for East River Park (Curbed) 

• Mayor de Blasio signs Open Streets bill into law (amNY ... previously on EVG) 

• New Yorkers on the CDC's new mask guidelines (Gothamist) 

• An East Village-focused look back at the pandemic's darkest days (The Nation) 

• The new show at the Housing gallery on the LES pays tribute to Steven Cannon, founder of the East Village-based A Gathering of the Tribes (Hyperallergic ... previously on EVG) 

• A list of the free fitness activities on the Open Streets of Avenue B (Instagram ... flyer) 

• Joyface reopened on Avenue C and Seventh Street this past week (Instagram) 

• Rough Trade's new NYC home — after seven years in Williamsburg — will be in Rockefeller Center (Official site) 

Photo of a familiar car around the neighborhood from Sixth Street between Avenue C and Avenue D

Empty 1st Avenue lot enters the surveillance era

A few weeks ago, in a post with a "rats galore" headline," a reader pointed out that the long-empty lot at 89 First Ave. between Fifth Street and Sixth Street had become a dumping ground for discarded boxes and other unwieldy items. 

Among the questions the reader had: suggestions or tips for getting the lot better secured from dumping and trespassing.

Last week, someone removed the mushy stacks of boxes, whacked some weeds and posted "private property" signs... 

.... as well as a "you are being watched!!!!!" warning...

We'll see if this keeps the Utz-Chips-box-tossing scofflaws at bay.

To recap: There are development plans here ... in May 2020,  another set of new building permits were filed with the city for the lot.  According to the DOB, the proposed building is six floors with eight residential units and ground-floor retail. In total, the structure is 8,183 square feet. The project is still awaiting approval.

This is the second time in recent years that plans have been filed for a new building for the address. In 2017, the city never approved plans for a similar-sized structure — eight units, six floors.

As previously reported, Florence Toledano was the owner of this lot. In 2013, public records show that the deed for the property was transferred from the Florence Toledano Living Trust to 89 First Avenue LLC. The DOB permit lists Daniel Toledano as the manager of the property. (And people always ask: Any relation to former boy wonder tenant hassler, Raphael Toledano? Don't know. Going with No.)

Previously on EV Grieve:
• Will this long-empty lot on 1st Avenue yield affordable housing?

• Drilling and soil testing commence at the long-empty lot at 89 1st Ave.

• Workers remove the sculpture fence and prep lot at 89 1st Ave.

Reader report: It's 'rats galore' at this long-empty 1st Avenue lot

An EVG reader shared an email with the subject line: "New tenants for 89 1st Ave?"

A bit of a misleading title, but it's rats, rats and rats galore. This "fence" (especially in quotes compared to the former grand one) is an invitation for garbage dumping, and the rat situation in the courtyards behind the building is dire. 

This is just the sidewalk; the lot is a mess. Do readers have suggestions or tips for how to get the lot better secured from dumping and trespassing? Or who to call to come to issue a fine? Or how to get this turned into a community garden for the time being? It's only been what, 40-plus years?!

There are development plans here ... last May,  another set of new building permits were filed with the city for the lot between Fifth Street and Sixth Street. 

According to the DOB, the proposed building is six floors with eight residential units and ground-floor retail. In total, the structure is 8,183 square feet. The project is still awaiting approval.

This is the second time in recent years that plans have been filed for a new building for the address. In 2017, the city never approved plans for a similar-sized structure — eight units, six floors.

As previously reported, Florence Toledano was the owner of this lot. In 2013, public records show that the deed for the property was transferred from the Florence Toledano Living Trust to 89 First Avenue LLC. The DOB permit lists Daniel Toledano as the manager of the property. (We do not know the relationship between Daniel Toledano and Florence Toledano. One reader said Daniel is a nephew of Florence.)

Daniel Toledano is still listed as the property owner and developer of the project. (Toledano is also listed as the owner of the lot that housed the 2Bn2C sculpture garden at 231 E. Second St. between Avenue B and Avenue C. More on that space in another post.)

In December 2017, workers dismantled the sculpture fence that had lined the First Avenue lot for years (since the late 1980s, per one estimate). The fence was created at the former Gas Station (aka Art Gallery Space 2B) on Avenue B and Second Street by Claire Kalemkeris and Johnny Swing in collaboration with Linus Coraggio.


[EVG photo from 2017]

Previously on EV Grieve:
• Will this long-empty lot on 1st Avenue yield to affordable housing?

• Drilling and soil testing commence at the long-empty lot at 89 1st Ave.

• Workers remove the sculpture fence and prep lot at 89 1st Ave.

Gong Cha debuts on St. Mark's Place

The new Gong Cha outpost has officially opened at 27 St. Mark's Place between Second Avenue and Third Avenue.

This is the ninth Manhattan outpost for Gong Cha, which describes itself as "one of the most recognized bubble tea brands around the world" ... which got its start in 2006 in Kaohsiung, Taiwan.

This block of St. Mark's has seen a variety of bubble tea come and go through the recent years... some still in business (Kung Fu Tea right across the street).... and some not (Mi Tea). And there's more on the way for the northwest corner of Second Avenue and St. Mark's Place.

This storefront had been vacant since Lab -320° closed in late 2016 after six months of selling ice cream. The previous longtime tenant here, The Sock Man, closed in January 2016 after a reported rent hike via (now former) landlord Raphael Toledano. 

Sock Man owner Marty Rosen later opened a new location at 99 1/2 St. Mark's Place ... where he remains today.

Added:

There was previously a Gong Cha location on 14th Street. 

Photo by Steven

Concern for the barking dogs at 58 St. Mark's Place

Back in October, an EVG reader wrote in about a seemingly unattended dog (or dogs) coming from somewhere in the shared courtyard toward the west side of the block between Seventh Street and St. Mark's Place ... and First Avenue and Second Avenue. 

Since then, thanks to some sleuthing, the reader has tracked down the location ... but is stymied by the lack of progress to free the dogs.

I posted on Next Door, where I was able to find a man across the courtyard who had already posted about the dogs, and could identify the building and posted a video of the dogs barking and scratching at the back entrance, as well as someone who had seen the dogs moved into the same building at the time when the barking started. 

Unfortunately, what we learned is that the dogs are being kept in the abandoned unit that formerly was home to Clay Pot at 58 St. Mark's Place. It's empty. So every time I report it to 311, they send a police officer who knocks on the door, no one answers, and they shut the animal neglect ticket. 

The Office of Health and Mental Hygiene isn't answering their phones or returning messages. The barking is near-constant day and night, and obviously very distressed and suffering. I have been posting flyers outside the door, which get ripped off, and I found a ConEd notice this week saying that there was no tenant in the unit but it was still receiving gas, which would be shut off. 

I (and the others on NextDoor) am now worried that if it gets cold again, or if electricity is cut off, those dogs will freeze to death, or die of sheer neglect in the dark.

Is there anything else EV Grieve readers can think of? I have tried 311 and the 92nd St ASPCA (both of which send the complaint to the local NYPD precinct, which knocks and leaves), flyers, Next Door. I'm at wit's end and feel as though I am just waiting for the dogs to die tragically. 

58 St. Mark's Place between First Avenue and Second is one of the many East Village buildings scooped up by now-disgraced landlord Raphael (Rafi) Toledano. The building appears to still be in his name, per public records.

In 2017, a subsidiary of lender Madison Realty Capital took over the portfolio while Toledano was mired in bankruptcy proceedings. It's not immediately clear who is managing the building today... or who is keeping the dogs behind an empty restaurant space.

How about some more bubble tea for St. Mark's Place

Gong Cha, which describes itself as "one of the most recognized bubble tea brands around the world," is opening an outpost at 27 St. Mark's Place between Second Avenue and Third Avenue. 

This location is now on the Gong Cha website (H/T Upper West Sider!) ... marking the ninth outpost in Manhattan for the global franchise founded in 2006 in Kaohsiung, Taiwan.

This block of St. Mark's has seen a variety of bubble tea come and go through the recent years... some still in business (Kung Fu Tea right across the street).... and some not (Mi Tea). 

This storefront (the one on the left) has been vacant since Lab -320° closed in late 2016 after six months of selling ice cream. The previous longtime tenant here, The Sock Man, closed in January 2016 after a reported rent hike via (now former) landlord Raphael Toledano. Sock Man owner Marty Rosen later opened a new location at 99 1/2 St. Mark's Place ... where he remains today.

Photo by Steven

NY AG: Madison Realty Capital to pay more than $1 million for victims of fraud and tenant harassment

The legal fallout from Raphael (Rafi) Toledano's brief yet soul-crushing stint as an East Village landlord continues.

Yesterday, New York Attorney General Letitia James announced an agreement that secures more than $1 million in rent credits for harassed tenants and provides housing placements for 10 homeless families. 

The agreement with private equity firm Madison Realty Capital comes after James found that the company aided and abetted tenant harassment and other fraud by Toledano.

"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.

"We are pleased to have resolved this matter without admitting or denying any of the allegations raised, and will continue to work with the tenants and community stakeholders to continue to improve the buildings and bring positive change to the community," a spokesperson for Madison said in a statement obtained by The Real Deal.

In June 2019, James announced a settlement with Toledano to put an end to his harassment of tenants and to prevent him from engaging in speculative real-estate deals designed to profit by violating New York's rent-stabilization laws.

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 

Report: These 12th Street residents are going on 5 months without gas for cooking

A handful of residents at 327 E. 12th St. between First Avenue and Second Avenue have not had any gas for cooking since February, the Daily News reported.

The article focused on longtime building resident Georgina Christ.

[She] hasn’t been able to use her stove since February. And for her, that means no home-cooked bone broth — and more trips to the grocery store for provisions at a time she’d rather stay in.

"It makes me have to go out more," said the 70-year-old, who's lived on the fifth floor of a sixth-story walk up since 1971. "I find I'm having to walk in the middle of the street to avoid people who are drinking and hanging out on the sidewalk without face masks."

Christ and at least four other tenants are without cooking gas.

Last week, local elected officials — Sen. Brad Hoylman, Congresswoman Carolyn Mahoney, Manhattan Borough President Gale Brewer, Assembly Member Deborah Glick and City Council Member Carlina Rivera — sent a letter to the building's management, Silverstone Property Group.



The letter reads in part:

The provision of reliable gas service is a crucial responsibility for property management companies and landlords regardless of the circumstances, but especially during the ongoing pandemic. Additionally, four of these tenants fall squarely within the demographics proven to be most vulnerable to COVID-19, and it is wrong to require them to continually risk exposure to the virus simply to secure meals.

We strongly urge Silverstone Property Group to restore gas service to these tenants as soon as possible and provide them with a 15% rent abatement, standard for diminution of services of this kind, for the period of time that they have been without gas service. These are stressful, difficult times for everyone, and these tenants shouldn’t have to worry about how they will be able to cook their meals on top of the other burdens that so many tenants are currently facing.

Silverstone did provide hot plates, though they reportedly aren't too functional.

A Silverstone spokesperson told the News that they are "ready, willing and able to repair the gas lines at the property as soon as possible."

However: "In order to do so, the property must be vacated according to engineering experts Silverstone has consulted."

Christ said that she is skeptical, and thinks this is "a ploy to empty the building and jack up rents."

No. 327 was among the many East Village properties that disgraced landlord Raphael Toledano owned at one point during his local building grab. He had been accused of harassing rent-stabilized tenants in a bid to vacate and deregulate units in them.

In 2017, a subsidiary of lender Madison Realty Capital took over the portfolio. As of January, Toledano was still mired in bankruptcy proceedings with Madison Realty Capital, per reports.

The listing at Streeteasy describes the building this way:

Most units have been gut-renovated with innovative and luxury finishes. Our design team works to create a rustic/modern look to appeal to a vast array of tastes and lifestyles. 327 East 12th Street is a building combined with beautiful high ceilings that provide an abundance of natural light and fresh air into each residence. Amazing Features Include:

•Wall-mounted 40 inch flat screen TV and soundbar pre-installed in every residence
•Washer and Dryer in every residence
•Ambiance-setting light dimmers

A sister property at 325 E. 12th St. has also suffered cooking-gas blackouts.

Another new building permit filed for the long-empty lot at 89 1st Ave.

Another set of new building permits are now on file with the city for a development at 89 First Ave., the long-empty lot between Fifth Street and Sixth Street.

According to the DOB filings, the proposed building is six floors with eight residential units and ground-floor retail. In total, the structure is 8,183 square feet.

This is the second time in recent years that plans have been filed for a new building here. In 2017, the city never approved plans for a similar-sized structure — eight units, six floors.

As previously reported, Florence Toledano was the owner of this lot. In 2013, public records show that the deed for the property was transferred from the Florence Toledano Living Trust to 89 First Avenue LLC. The DOB permit lists Daniel Toledano as the manager of the property. (We do not know the relationship between Daniel Toledano and Florence Toledano. One reader said Daniel is a nephew of Florence.)

Daniel Toledano is still listed as the property owner and developer of the project.

In December 2017, workers dismantled the sculpture fence that had lined the lot for years (since the late 1980s, per one estimate). The fence was created at the former Gas Station (aka Art Gallery Space 2B) on Avenue B and Second Street by Claire Kalemkeris and Johnny Swing in collaboration with Linus Coraggio.


[EVG photo from 2017]

Previously on EV Grieve:
Will this long-empty lot on 1st Avenue yield to affordable housing?

Drilling and soil testing commences at the long-empty lot at 89 1st Ave.

Workers remove the sculpture fence and prep lot at 89 1st Ave.

MAD Toast House has gone out of business

MAD Toast House is, well, toast here at 332 E. Ninth St. between First Avenue and Second Avenue.

A tipster noted that paper arrived on the door and window yesterday, officially bringing an end to the shop that served a variety of bubble tea, sparkling water and toast-related creations. Yelp and Google both list MAD as permanently closed.

MAD opened early last June, and lasted 43 (and a third) years less than the previous tenant, Clayworks Pottery, which was forced to close in the fall of 2017 thanks to predatory landlord Raphael Toledano.

Week in Grieview

[In Tompkins Square Park Friday via Derek Berg]

Posts this last week included...

• 2nd Avenue gas explosion trial recap (Tuesday)

• Soft opening for Baji Baji on 1st Avenue (Monday)

• A new East Village home for Social Tees (Thursday)

• Discarded flower power (Monday)

• Former Crooked Tree transforming into Isabella on St. Mark's Place (Thursday)

• Bait & Hook has closed (Tuesday)

• Picture this: Details on how you can be part of an East Village photo club (Thursday)

• Report: Half of the units in Raphael Toledano's former East Village portfolio remain vacant (Wednesday)

• Sanpoutei Gyoza & Ramen debuts on 2nd Avenue (Thursday)

• Construction watch: 799 Broadway (Wednesday)

• City Council bill will make sure that your cash is good at all businesses (Friday)

• The artists will run Performance Space New York in 2020 (Friday)

• The Sunshine Cinema closed 2 years ago on this date (Tuesday)

• This East Village view greets visitors to new exhibit at the Museum of the City of New York (Saturday)

• La Mia Pizza coming to 4th Avenue (Wednesday)


[Nice addition on 1st Avenue — photo by Derek Berg]

• Chase unveils its Coffee Shop-replacing sign on Union Square (Tuesday)

• Today in vehicles with diplomatic plates on 6th Street (Friday)

• S'MAC is now open until 5 a.m. on weekends (Friday)

• iSouvlaki Greek Grill on tap for 139 E. 12th St. (Tuesday)

• Police looking for 5 suspects in robbery inside building near 2nd Avenue and St. Mark's Place (Wednesday)

• NYPD officer pinned between vehicles during traffic stop on Houston and Avenue D (Tuesday)

• Bites of Xi'an looking to make its mark on 10th Street (Wednesday)

• Evening Dew Spa rides off into the sunset on 9th Street (Thursday)

• A random appreciation: the Immaculate Conception Church on 14th Street (Monday)

• Citi Bike docking station arrives on 12th Street at Avenue C (Tuesday)

• Room rental of the day (Monday)

... and a random sunrise photo along Avenue A today...



---

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Report: Half of the units in Raphael Toledano's former East Village portfolio remain vacant

Nearly three years have passed since Silverstone Properties, a subsidiary of Madison Realty Capital (MRC), took control of disgraced landlord Raphael Toledano's 15-building portfolio in the East Village.

As The Real Deal reported yesterday, due to drawn-out court proceedings, a bankruptcy plan has yet to be executed for the buildings. According to Met Council, a tenants’ rights group, half of the 279 units have been “warehoused” since 2016. Per TRD: "The portfolio includes 226 rent-stabilized apartments, according to tax filings."

This past December, Tenants Taking Control — the group formerly known as the Toledano Tenants Coalition — reported that there were 136 vacant apartments across the 15-building portfolio. At the time, the group called on MRC to sell the 15 buildings to a nonprofit preservation buyer.

In comments to TRD, an MRC spokesperson blamed Toledano for the delay, saying, “The owner of the properties demolished the vacant units a few years ago and therefore the vacant units are not habitable at this time.” She said that Madison still does not own the properties despite the foreclosure in 2017.

In June 2019, Attorney General Letitia James announced a settlement with Toledano to put an end to his harassment of tenants and to prevent him from engaging in speculative real-estate deals designed to profit by violating New York’s rent-stabilization laws.

The AG's investigation established that Toledano engaged in a pattern of fraudulent and illegal conduct throughout his work as a landlord and real-estate developer. He harassed tenants through coercive buyouts, illegal construction practices and failed to provide his rent-regulated tenants with utilities, repairs and other necessary services, according to the AG's office.

Toledano had received $124 million in cash and lines of credit from MRC to finance his $97 million purchase of the buildings.

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

Tenants call out Madison Realty Capital: Stop warehousing rent-regulated apartments

More than 50 residents, community activists and local elected officials gathered on Tuesday afternoon in the rain outside 325 E. 12th St., a building owned by Madison Realty Capital (MRC) that serves as a de-facto office for MRC’s property management arm, Silverstone Properties.

The group, led by Tenants Taking Control (formerly known as the Toledano Tenants Coalition), called on MRC to sell their 15 buildings to a nonprofit preservation buyer.

They also wanted to bring attention to the practice of property owners letting rent-regulated apartments sit vacant in the aftermath of the Housing Stability and Tenant Protection Act of 2019.

According to the tenants, there are 136 vacant apartments across the 15-building portfolio, which has a total of 279 units. (MRC took control of the portfolio from disgraced landlord Raphael Toledano in the spring of 2017.)



"It is unconscionable to keep these apartments empty, when affordable housing is so rare," said TTC member Beth Carey.

"We have persevered for four long years — enduring an onslaught of insincere buyout badgering, construction as harassment, elevated lead dust, vermin infestations, and unfair lawsuits," said Sandra Mayer, a TTC tenant. "We have watched our friends and neighbors be picked off one by one until these once vibrant buildings stood dark and quiet. This community of working-class families and artists should not lose its spirit. It is our goal to bring back a solid base of rent-stabilized housing in the East Village."

Joining the tenants were several community groups and elected officials, including members of the INK Tenants Coalition, Cooper Square Committee, Lead Dust Free NYC coalition, St. Nicks Alliance, Good Old Lower East Side, United Neighborhood Organization (UNO), Manhattan Borough President Gale Brewer, Assemblymember Harvey Epstein, Assemblymember Deborah Glick, Sen. Brad Hoylman and City Councilmember Carlina Rivera.


[Sen. Hoylman]


[Assemblymember Glick]



Photos courtesy of the Cooper Square Committee.

Previously on EV Grieve:
• Health Department to inspect Raphael Toledano's East Village properties for toxic levels of lead dust

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

• Tenant activists praise lead reform, urge for more protections from city against predatory landlords

• Petition asks Madison Realty Capital to waive legal fees for evicted East Village family

• 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

• Santa delivers sacks of coal to Madison Realty Capital, Rafael Toledano's lenders

Financing comes together for the office building planned for the gateway of the East Village

[Photo from yesterday]

All has been quiet on the northeast corner of Third Avenue and St. Mark's Place since workers cleared the lot in late summer of the assemblage of buildings that housed Korilla BBQ, the Continental and McDonald's, among other businesses.

For the foreseeable future, the RIP ST. MARKS message, which arrived over the summer on the west-facing wall of 5 St. Mark's Place, will continue to greet passersby.

As you likely know, a 10-floor office building with ground-floor retail is in the works here. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage, a move that has plenty of critics.

In June, the Landmarks Preservation Commission voted to support the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the Morris Adjimi-designed building. Those meeting dates have not yet been made public. (This Zoning Application Portal provides a project status. The most recent activity by the developer: filing the Land Use application on Oct. 3.)

Meanwhile, the financial elements are coming together for the project.

This press release — citing square footage even though it hasn't been determined — landed in our inbox last Friday:

Madison Realty Capital (MRC) has provided a $48 million senior loan for the funding of a $79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place ...

Hana Financial Group, a leading South Korean financial services company, provided Real Estate Equities Corporation (REEC), an experienced local developer with an additional $31.1 million of mezzanine financing to fully capitalize the project.

REEC’s development plans call for a 10-story, 68,224-square-foot modern boutique office building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail.

The property is well-located at the corner of St. Mark’s Place and 3rd Avenue in a section of Manhattan’s East Village that has seen significant growth in demand for quality office space from a mix of tech, finance, law, and family office tenants in recent years.

The site is adjacent to 51 Astor Place, a 400,000-square-foot office and retail asset developed by Minskoff Equities that is home to anchor tenants IBM Watson and St. John’s University, in addition to a strong retail roster that includes Shake Shack, Flywheel, Bluestone Lane and Orange Theory.

In reporting on this financing, The Real Deal noted:

The developers will be eyeing rents in the area of $150 per square foot. Such figures were once only seen in the most expensive locations in Midtown but now are commonplace for newly constructed office buildings in areas like the Meatpacking District, Soho and Greenwich Village.

[A rendering of 3 St. Mark's Place]

Madison Realty Capital, who provided the senior loan, is a familiar name for some EV residents. In the fall of 2015, they loaned $124 million to Rafael Toledano, a then 25 year old with no track record as a landlord so that he could buy a portfolio of 15 buildings, mostly in the East Village. He eventually defaulted on Madison's loan.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

Previously on EV Grieve:
Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place

End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place

New building plans revealed for 3rd Avenue and St. Mark's Place

Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

The annual 9th Street Block Party is tomorrow (Saturday — on 9th Street)

The annual 9th Street A-1 Block Association Block Party — one of the best around — is coming up tomorrow (Sept. 14).

Both residents and merchants along the block — Ninth Street between Avenue A and First Avenue — will have items for sale. Expect some live music too.

In addition, look for the return of Clayworks Pottery for the day. Helaine Sorgen will have items left from her Ninth Street shop, which closed after 44 years in 2017 thanks to Raphael Toledano.

Find all this — and more! — from 11 a.m. to 5 p.m. There isn't a rain date — so don't let it rain!