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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...
