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
