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

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.

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

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

[Photo from May 2015 by Stacie Joy]

Landlord Raphael Toledano has agreed to pay a little more than $1 million to settle claims that he harassed tenants at 444 E. 13th St., according to The Real Deal.

Last spring, rent-regulated tenants at 444 E. 13th St. between Avenue A and First Avenue accused Toledano, 26, and a management company he hired of harassment and intimidation. A staff attorney at the Urban Justice Center, who is representing the East 13th Street tenants, told reporters during a rally outside the building last May 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.'"

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

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

The settlement between Toledano and several rent-stabilized tenants at No. 444 was finalized May 6, per The Real Deal, who reports that the New York Attorney General’s office and the state Homes and Community Renewal’s tenant protection unit are continuing their joint investigation into the harassment claims.

Toledano bought the building for $6.1 million in January 2015. Later in 2015 he bought a 16-building parcel in the neighborhood.

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

Brookhill Properties launches chocolate offensive

Raphael Toledano's Brookhill Properties recently closed on a 16-building East Village portfolio.

An EVG reader who lives at one of the properties, 327 E. E. 12th St., passed along the welcome package that the Brookhill Property management team left yesterday for residents — a small box of chocolates… which accompanied a fairly innocuous letter about the change in ownership.

The letter points out that "We pride ourselves on our tenant relations department and will go to all lengths to make sure that you are satisfied with our services."

Beleaguered rent-regulated tenants at the Toledano-owned 444 E. 13th St. received wine and fruit baskets back in May after the continued lack of basic building services. Earlier in May, residents at No. 444 filed a lawsuit against Toledano and the management company, Goldmark Property Management, for "deplorable conditions" as well as for alleged ongoing threats and harassment. (Toledano later reportedly fired Goldmark Property Management after news of the lawsuit broke.)

In August, state officials served subpoenas on Goldmark Property Managmenet, investigating whether the company threatened tenants with police raids, prostitution stings, evictions and the shut off of essential service, according to The Real Deal.

According to an article on 444. E. 13th St. that City Limits published last Thursday, there were 244 open violations of the city's housing maintenance code for hazards such as cracks in the walls and ceilings and infestations of cockroaches, mice, and bedbugs at one point in June. Since then, City Limits reports that the number of open violations at the East 13th Street building has been reduced to 84.

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

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

Report: State investigating East Village landlord Raphael Toledano

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

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

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

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

The Villager looks at landlord Raphael Toledano's criminal past

In compiling nearly a 20-building portfolio in the East Village, 25-year-old landlord Raphael Toledano has been accused of allegedly harassing his tenants, and other misdeeds, according to several published reports and a letter from the Toledano Tenants Coalition.

Now tenants are learning about Toledano's criminal past in an article published this week at The Villager. According to the paper, "he was convicted of aggravated assault and causing bodily injury less than four years ago, and once was charged with trying to swindle a bank out of hundreds of dollars, according to New Jersey court records and police reports."

Specifically:

In a 2012 confrontation that landed two teenagers in the hospital, Toledano allegedly beat the two youths with what police reports alternatively describe as a “crowbar,” “a branch” and “a metal or wood object approximately two and a half feet long.”

And in a separate case three years earlier, Toledano was charged with defrauding TD Bank of $500 in a scheme involving multiple withdrawals from three different banks.

A spokesperson for Toledano and his company, Brookhill Properties, dismissed this disclosure as "character assassination," noting that the incidents "have absolutely nothing to do with Brookhill Properties or the company's conduct as a landlord."

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

In an article published last week, The Villager reported that the residents living in East Fifth Street buildings newly aquired by Raphael Toledano's Brook Hill Properties had "documented more than 140 interactions, altercations and outright threats by Toledano and his camp during the two-month period from this July 8 through Sept. 8."

In a Talking Point column in this week's paper, The Villager lets the 25-year-old Toledano outline his plans for the neighborhood:

The reason I chose to grow my business in this beautiful neighborhood is simple: I believe in the East Village. I am not here to transform this community, rather I am determined to become a part of the fabric of the neighborhood that so many wonderful New Yorkers call home.

And!

My plans for these buildings are simple. We want to renovate the apartments and common areas, improve the outward appearance and take suggestions from tenants for how to make the East Village the ultimate live / work / play community.

Beyond that, we are committed to making meaningful contributions to improve the welfare of the community. I have been engaged with a number of organizations to find out what we can do to help, and I look forward to announcing new partnerships in the next few weeks. But in the meantime, what you need to know is that my company is here to make the East Village a better place.

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

Brook Hill Properties launches chocolate offensive

More about alleged harassment and landlord visits via Brook Hill Properties

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

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.

97 2nd Ave. is for sale — again

[Photo via LoopNet]

The 6-story building between Fifth Street and Sixth Street has returned to the sales market.

First, here's more from the pitch:

The 10,948 square foot building (approx.) contains 10 residential units and one retail unit. Currently, of the 10 apartments, eight are free market and two are rent stabilized.

69% of the property’s income is derived from the residential component and 31 percent from the ground floor retail. The 10 residential apartments comprise 9,123 SF of the building’s gross square footage and are made up of two, three, and four bedroom units. The retail tenant on the ground floor is a restaurant currently paying $249,142 annually.

Asking price: $14.5 million.

This building is notable for being the source of a legal tussle between Raphael "I will bury you" Toledano and developer Michael Shah.

During a hearing in November 2017, a federal judge tossed a bankruptcy case filed by Toledano, ending his bid to stop the sale of 97 Second Ave. to Shah’s Delshah Capital, The Real Deal reported at the time.

Both landlords were claiming ownership of the building. It's a little complicated. Read the Real Deal piece here for the full blow by blow.

According to the documents filed by Shah, Toledano allegedly told him, "I will bury you, literally. I will bury this building and make sure of it."

However, it was never buried, and now awaits another owner. Toledano reportedly lost control of the property when he defaulted on a $2-million loan.

No. 97 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.

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

Report: Threats made in ongoing battle over 97 2nd Ave.

Report: State investigating East Village landlord Raphael Toledano

[Photo from May by Stacie Joy]

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

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

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

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

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

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

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

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

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

Report: Judge dismisses Raphael Toledano suit over 97 2nd Ave.

During a hearing on Monday, a federal judge tossed a bankruptcy case filed by Raphael "I will bury you" Toledano, ending his bid to stop the sale of 97 Second Ave. to Michael Shah’s Delshah Capital, The Real Deal reports.

Both landlords were claiming ownership of the 11-unit building between Fifth Street and Sixth Street. It's a little complicated. Read the Real Deal piece here for the full blow by blow.

According to the documents filed by Shah, Toledano allegedly told him, "I will bury you, literally. I will bury this building and make sure of it."

The 6-story building 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.

Toledano reportedly lost control of the property when he defaulted on a $2 million loan.

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

Report: Threats made in ongoing battle over 97 2nd Ave.

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.

Permits filed for 6-story building in long-empty lot at 89 1st Ave.

[Photo from Friday]

Plans were filed last week with the city for a 6-floor building at 89 First Ave., the long-vacant lot between Fifth Street and Sixth Street.

According to the pre-filing info at the DOB, the building will house eight dwelling units in nearly 7,400 square feet of space. The nearly 1,000 square feet per unit suggests condos. There's another 900 square feet listed for the ground-floor storefront.

As you may recall, we heard a rumor in the fall of 2014 that there were preliminary plans in place to build a 7-floor residential building here.

Since then, we've spotted workers clearing the lot of various weeds and trees and taking soil samples (here and here, for instance).

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.) Andrew Fredman is listed as the architect of record for the new building.



Daniel 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. Development plans have been rumored there in recent years as well. There is nothing on file with the DOB for this property.


[231 E. 2nd St.]

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.

New state legislation aims to combat predatory equity

Local elected officials introduced joint legislation on Sunday targeting the practice of predatory equity.

State Sen. Brad Hoylman, Assemblymember Harvey Epstein and various tenants and advocates were present at a press conference outside the office of Westminster Management, a Kushner Companies subsidiary, on 12th Street between Avenue A and Avenue B. There, they discussed the legislation, which directs the New York State Department of Finanical Services (DFS) to collect data on financial institutions that lend to property owners with the intent to displace current tenants.

Per the announcement:

Specifically, the bill requires DFS to investigate the role financial institutions play in encouraging anti-tenant practices by notorious landlords like Jared Kushner, Steve Croman and Raphael Toledano.

Similar to the subprime mortgage crisis of 2008, lax underwriting standards and a general lack of transparency have allowed speculators and real estate agents to secure outsized mortgages with very little discretion and oversight. Owners use these loans to make purchases based on unrealistic projections of rising rents, and in turn have difficulty paying the mortgages.

Building owners — anxious to recoup on their hefty investments — often resort to abusive and exploitative tactics to drive rent-regulated tenants out. These abusive practices, known as predatory equity, are best-exemplified by figures like Steve Croman and Jared Kushner.

In the fall of 2015, after the Daily News reported that the state was investigating Toledano for tenant harassment at 444 E. 13th St., he received two loans totaling $124 million from private equity firm Madison Realty Capital to buy and renovate a 16-building East Village portfolio.

Per The Real Deal in an article last July:

The leverage on the deal — which clocked in at 128 percent compared to the typical 50 to 65 percent on a New York City multifamily deal — raises questions about how culpable lenders are in perpetuating harassment. In short, are they turning a blind eye when their borrowers too-aggressively push to turn rent-stabilized apartments into luxury units?

Pressured to generate income from the buildings to pay off his loans, Toledano reportedly attempted widespread buyouts. And many of the tenants at the buildings accused him of harassment.

"No longer can we allow landlords like Kushner, Croman and Toledano to force our neighbors out of their homes in order to make a quick buck," Hoylman said in a statement. "We demand that New York State investigate the practice of predatory equity so we can take the necessary steps to protect rent regulated tenants from harassment and eviction."



Said the recently elected Epstein: "This legislation will bring us closer to stopping the practice of predatory equity before it starts the cycle of tenant harassment and displacement that has become all too familiar in our city. Bad actor landlords and scheming financiers should take note: your days of destabilizing our neighborhoods with your shady business practices are numbered."

Croman was released from jail on Friday after serving eight months of a year-long sentence for fraud.

Previously on EV Grieve:
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

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

[Photo yesterday by Goggla]

Workers yesterday dismantled the sculpture fence that had lined the empty lot for years (since the late 1980s, per one estimate) here on First Avenue between Fifth Street and Sixth Street.

As I understand it, 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. (In an email, Coraggio said that he wanted to salvage the fence and place it in the Kenkeleba Sculpture Garden on Third Street between Avenue B and Avenue C where more of his work is on display.)

For now, it appears that at least one section of the fence is lying inside the lot...


[Photo by EVG reader Mona]

Aside from removing the fence, workers — once again — cleared out some of the weeds in the space.



Plans were filed in the spring with the city for a 6-floor building. According to the pre-filing info at the DOB, the building will house eight dwelling units in nearly 7,400 square feet of space. The nearly 1,000 square feet per unit suggests condos. There's another 900 square feet listed for the ground-floor storefront. (The city has yet to approve these permits.)

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.) Andrew Fredman is listed as the architect of record for the new building.

In recent weeks the fence had started to sag... there was an opening in the front...


[Photo from Sunday]

It looked as if someone or something rammed the fence...


[Photo from Sunday]

And someone had written a lyric from "Chinese Rocks" back in the summer...



Updated 5:30 p.m.

EVG reader Rik Rocket shared this photo of the new fence going in...



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.

Permits filed for 6-story building in long-empty lot at 89 1st Ave.


[Photo from 2014]

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

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.