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.

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

[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...

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

Getting to know Raphael Toledano

The Real Deal checks in with a profile on Raphael Toledano, the 26-year-old developer who has been buying up buildings around the East Village.

The feature delves into his controversial record, such as the eight lawsuits that he has been hit with since February 2014, and his heavy reliance on debt. (Per the article: "New York City multifamily deals are leveraged at an average 50 to 65 percent — Toledano’s deal, by comparison, comes out to 128 percent.")

The feature, not exactly an image softener, notes that Toledano made "frat-tastic boasts about his wealth."

“I’m worth a fuckload of money, bro,” he said.

The statement was all the more remarkable considering that just five years ago the New Jersey native was waiting tables.

In an industry known for colorful personalities, Toledano — who goes by the nickname “Rafi” — has emerged as an unlikely up-and-coming player in the city’s competitive multifamily market. Over the past nine months, he has become one of the East Village’s biggest landlords, after his investment firm, Brookhill Properties, agreed to buy 28 buildings in two separate portfolios from the Tabak family for a combined $140 million. He currently owns more than 400 units — counting only the buildings he’s already closed on.

Altogether, Toledano values his entire portfolio, the bulk of which are aging East Village walk-ups, at $500 million.

Toledano’s plan is to rehab the units, paving the way for destabilization and rent hikes. It’s a playbook move for multifamily investors. But listen to him talk, and he might as well be building on Billionaires’ Row.

“I consider myself the ultimate of developers because I’m taking a run-down, neglected building and developing it,” he said. “Gary Barnett has the easiest job — he gets vacant land, he gets an architect, a good contractor, and he builds up. For me, it’s not like that.”

The article notes that Toledano is also working to introduce a new line of shoes he designed in partnership with a Portugal-based shoemaker.

And while he has "recently sold a few buildings in Murray Hill and Gramercy Park for an undisclosed price, the core East Village assets, he said, he will keep "'for eternity.'"

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

Happy holidays from Raphael Toledano and Brookhill Properties

The gift-giving by Raphael Toledano's Brookhill Properties continues this holiday season.

After closing on a 16-building East Village portfolio back in the fall, residents received a box of chocolates as a welcome from their new landlord.

Some tenants in these newly acquired buildings have accused Toledano and his associates of predatory practices in various published reports (The New York Times, Daily News, The Villager and DNAinfo) and at least one lawsuit.

Previously, 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. (This group of tenants filed a lawsuit against the property management.)

And more recently, Toledano tenants received another gift ...



... $20 gift cards to Ninth Street Espresso.

One tenant described the reaction to the gift from his fellow building tenants, many of whom are not having their leases renewed and facing eviction, as "surprised confusion."

Another Toledano tenant had the following response:

Thank you for your kind holiday greetings, and for your thoughtful gift card supporting our neighbors.

If you truly want to make good on your generous wishes for my peace and happiness in the new year, please consider dropping your case against me and renewing my lease.

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 about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

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

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

Report: New York Attorney General intervenes to stop eviction of tenants in Raphael Toledano-owned building on 13th Street

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

Updated to include the Gothamist post.

Landlord Raphael Toledano is still causing grief for East Village residents.

The controversial landlord, who bought up dozens of East Village properties only to foreclose on many of them later, is still reportedly the owner — via an LLC — of 444 E. 13th St. between Avenue A and First Avenue.

According to published reports, Toledano filed for bankruptcy on the building, and is attempting to reject the rent-stabilized leases for a number of residents in the building, as NBC 4 first reported.

Per Gothamist, Toledo/the LLC is asking for a bankruptcy court to terminate the tenants' leases, on the grounds that a proposed $8.2 million sale of the property can't go through while the rent-stabilized leases are in place. (The Gothamist piece has a lot of good details not reported elsewhere.)

Now, however, New York Attorney General Letitia James and a handful of housing officials from the city and state have intervened to help the tenants, eight of whom have been withholding rent due to inadequate heat, broken or defective plumbing, garbage in the hallway and rodents, as Patch noted. (The NYC Department of Housing Preservation and Development website lists 68 outstanding violations.)

James and the housing officials joined in an action in the United States Bankruptcy Court for the Southern District of New York on behalf of tenants at No. 444. Here's more via a media advisory from the AG's office:

Both the City and State are opposing the building owner's application to reject tenants' leases, an application that is a thinly-veiled attempt to flout rent regulation laws and displace tenants.

"Bankruptcy Court should not be used as a tool to unjustly oust rent-stabilized New Yorkers from their homes," James said. "In filing this motion, my office is working to ensure that the tenants are not displaced. Housing is a right, and we will continue to use every legal tool available to stand up for tenants and to enforce their rights."

Local City Councilmember Carlina Rivera pointed out Toledano's ugly past as a landlord.

"The owner of 444 East 13th St. has spent years illegally harassing the tenants living in these rent-stabilized apartments, and this legal maneuver is just the latest shady tactic to remove these long-time New Yorkers from their homes," she said in a statement. "Bad actors across New York need to be put on notice — our government is in the business of protecting and expanding rent-regulated apartments, and I certainly will not sit idly by while harassment takes place in my District."

James and Rivera both took part in a rally outside 444 E. 13th St. yesterday, as PIX 11 reported.

For years, these residents have stood resilient in the face of attacks by their predatory landlords. Today we rallied to send a message that greed is not a case for displacement & won’t be tolerated. Thanks to @TishJames @MTorresSpringer @NYSHCR & @GOLESNYC for standing united. pic.twitter.com/SaCzvXCtz5

— Carlina Rivera 利華娜 (@CarlinaRivera) March 13, 2019

This is the address where many people first heard about the twentysomething Toledano. In the spring of 2015, 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.)

In May 2016, 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 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, 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

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.

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

[Photo from May by Stacie Joy]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Report: State investigating East Village landlord Raphael Toledano

Report: 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

Report: Lawsuit accuses Raphael Toledano of not paying his office rent

Rent-stabilized tenants at the Raphael Toledano-owned 444 E. 13th St. have claimed that they were allegedly threatened and harassed to leave their homes.

Toledano is now reportedly having landlord issues of his own.

Per The Real Deal:

Landlord HRC Corporation is accusing broker-turned-investor Raphael Toledano of failing to pay rent at his Flatiron District office.

HRC filed suit Wednesday, asking a State Supreme Court judge to award it a total of $6.4 million, the amount allegedly due over the entire 10-year lease, plus damages.

In a statement, a Brook Hill spokesperson wrote "We are not in default of the lease."

In a $97 million deal, Toledano and Brook Hill closed on a 16-building East Village portfolio back in the fall.

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 about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

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

East Village residents ask Madison Realty Capital to 'See the Light'

In the rain on Tuesday evening, members of Tenants Taking Control, a coalition of residents from buildings formerly owned by Raphael Toledano, along with the Middle Church Jerriese Johnson Gospel Choir and the Cooper Square Committee, held a march and vigil to urge Madison Realty Capital (MRC) to end their pursuit of nearly $250,000 in legal fees from the SmithStone family.

The congregation of activists, clergy, and community members assembled on Union Square and later marched to 24th Street, where the group held a candlelight vigil outside the apartment of MRC’s co-founder and managing principal Josh Zegen, urging him to release the family from the responsibility of paying the corporation's legal fees.

Here's background on the situation via the Cooper Square Committee:

In October 2003, the SmithStone family moved into an apartment at 233 E. Fifth St. They opened the nonprofit Phoenix Theatre Ensemble a year later. Their theatre offers a full season of performances as well as lessons in theatre to aspiring actors, seniors and kids in local public schools.

Their building was purchased by Raphael Toledano in 2015, with a loan from Madison Realty Capital. The fledgling landlord asserted that the family’s apartment had lost its rent-stabilized status in 2003 and sued to retake possession of the unit, but the family opposed Toledano’s claim, arguing that the apartment was rent stabilized. The legal battle lasted 34 months. In the midst of it, Toledano defaulted on his loan. Madison Realty Capital reclaimed the properties as de-facto landlord and continued prosecuting the lawsuit.

In June 2018, the Appellate Division of NY State Supreme Court ruled against the family, and Madison Realty Capital immediately began eviction proceedings. Due to a clause in their lease, the SmithStones are now being held accountable by Madison's lawyers for Toledano/Madison Realty Capital's legal fees, amounting to about $250,000. As dedicated artists and educators with 3 college-age children, these fees would be disastrous to the family.

Here are a few scenes from Tuesday's march and vigil...

















This is the second SmithStone rally for the group. On Aug. 23, Tenants Taking Control, supporters of the family and Assemblymember Harvey Epstein also gathered outside Zegen’s home, calling on Madison to drop their pursuit of the legal fees.

The court date to decide whether the family is subject to these fines was adjourned until early November.

Photos via the Cooper Square Committee.

Previously on EV Grieve:
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

Amid claims of being a rent-stabilized tenant, Raphael Toledano faces eviction from his home

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

Raphael Toledano continues to build his impressive tapestry of quotable quotes in his tenure as an East Village landlord.

“I’m worth a fuckload of money bro.” @markgmaurer’s profile on the rapid & rocky ascent of EV landlord Rafi Toledano https://t.co/Y3Qvbea8jT

— Kerry Barger (@kerrybarger) June 1, 2016

His latest keepsake soundbite came during the ongoing battle over 97 Second Ave. between Toledano and Michael Shah’s Delshah Capital. Both landlords are claiming ownership of the 11-unit building. (It's complicated.)

The Real Deal has all the details about the legal drama here.

In August ... Toledano filed for Chapter 11 bankruptcy protection on the property and tried to procure a buyer. According to court documents filed by Shah, Toledano also used that time to threaten and extort him. Toledano threatened to instruct the tenants to withhold rent, according to the documents, and told Shah, “I will bury you, literally. I will bury this building and make sure of it.”

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. Toledano said in the bankruptcy protection filing that the property is valued at $15.1 million, per the Commercial Observer.

As for the status of Tolednao and his other neighborhood properties, The Real Deal reported:

The 27-year-old landlord is awaiting approval for the sale of the deeds of 15 distressed East Village properties to lender Madison Realty Capital, which recently replaced him as property manager on the buildings.

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

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

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

Report: Toledano tenants hanging tough in face of evictions

The Villager checks in with a piece this week about residents now living in buildings owned by new landlord Raphael Toledo (pictured right).

As the paper notes, to date, "Toledano, who purchased more than a dozen properties in the area this year, hasn’t made the best of impressions on his new tenants, who have reported late-night phone calls and ominous visits by his associates that leave them feeling threatened."

And there have been a few eviction notices, which arrived after buyout offers. Lawyer David Frazer currently represents three Toledano tenants in rent-regulated apartments in the neighborhood.

“Two of the cases that I currently represent involve completely made-up allegations by the landlord, one of which they’ve already caved in on and given my client a renewal lease,” Frazer told The Villager.

The attorney said that case involved a tenant who had a pseudonym listed on his mailbox from the beginning of his tenancy, which the landlord used as evidence to claim that the man was illegally subletting the apartment.

Read the whole Villager article here.

In a $97 million deal, Toledano and Brook Hill closed on a 16-building East Village portfolio back in the fall.

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 about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

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

Report: Lawsuit accuses Raphael Toledano of not paying his office rent

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

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' 

About 'a coordinated visit' to buildings owned by Brookhill Properties on East 5th Street

[EVG file photo of 233-235 E. 5th St.]

Despite assurances to the contrary, some residents who live in the 16 buildings that Raphael Toledano's Brookhill Properties recently purchased are apprehensive about their future rental situations… especially with the news that has been coming out of 444 E. 13th St. in recent months, where rent-stablized tenants claim that they were allegedly threatened and harassed to leave their homes after Brookhill's January acquisition. (See The New York Times and DNAinfo for more background.)

We received the following statement from the East Fifth Street Toledano Tenants Coalition, consisting of five Toledano-owned buildings on Fifth Street between Second Avenue and Cooper Square.

[T]hese five buildings on East Fifth Street received a coordinated visit last Thursday [Oct. 22] by a group of representatives from the New York State Attorney General’s office, The New York City Department of Buildings and The New York State Division of Housing and Renewal. All apartment doors were knocked on, and representatives spoke with available tenants, made inspections of apartment conditions and building conditions and issued violations to the buildings. Perhaps the presence of these state and city agencies will ensure that Toledano’s tenants on East Fifth Street will not have to suffer what those at 444 East 13th St. did.

Meanwhile, a resident on East Fifth Street passed along this letter, noting that "Brookhill forgot to pay his post office box fee! Attached is a letter all East Fifth Street residents received last week."


[Click on image for larger view]

Per the note:

We are doing our best to have your monthly rent payments processed as soon as possible and apologize for any delay in doing so during this first month of ownership. Moving forward you can be confident that processing of your payments will be timely and accurate. This being said, if you have found that your rent check has not been processed for the month of October 2015 and your bank account has not been debited, please re-send your payment to the below address. We have been informed by USPS that there was a system glitch, which resulted in the return of numerous tenant's rent payments. This was remedied on October 19,2015.

If your payment was processed and thus your account has been debited, no action is required on your part. Please continue to ensure that your check is made payable to the order of
the specific LLC designated to your building.

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 about alleged harassment and landlord visits via Brook Hill Properties

Brook Hill Properties launches chocolate offensive

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