The Real Deal New York

Investor eyeing rents of $100 per sf at Chelsea rental

Raphael Toledano pays $42M for 125 West 16th St., in deal financed by Madison Realty Capital

April 24, 2015 09:00AM
By Claire Moses

From left: Raphael Toledano, 125 West 16th Street and Josh Zegen

From left: Raphael Toledano, 125 West 16th Street and Josh Zegen

Raphael Toledano, a private investor with offices in Manhattan and Brooklyn, bought a six-story Chelsea building for $41.5 million, The Real Deal has learned. Toledano is looking to make the property “the most high-end and most luxurious building in Chelsea,” and is looking to ask rents of more than $100 per square foot for the units.

Josh Zegen’s and Brian Shatz’s Madison Realty Capital provided $34 million in financing. MRC’s loan provides the buyer with an immediate $29 million to purchase the property, followed by $5 million for planned renovations.

Alice Kenney, a long-time private owner, bought the building — which comes with 16,000 square feet of additional air rights — in 1973.

Toledano said he is planning to add two floors —and a total of roughly 20 units, eight of which will be penthouses — to the building. Of the 39 residential units, 25 are vacant or market-rate, the rest are rent-regulated.

Toledano plans to fully renovate the building and add a doorman and a gym in the basement. The two office units will be turned into “townhouse-style” homes with a separate entrance.

“In this case the borrower needed immediate funding in order to close the acquisition and support renovation plans, Zegen said in a statement. “As an owner of several multifamily assets in Chelsea, we were able to get comfortable with the submarket extremely quickly. This is an instance where our vertically-integrated real estate platform worked seamlessly and quickly to deliver for the borrower.”

ABC Realty’s Bill Hara represented the sellers — an LLC by the name of Alimir Management — and Truman Realty Group’s Ralph Hertz represented the buyer.

The roughly 39,000-square-foot building currently has approximately 39 residential units and two office spaces, Toledano said. The new owner is looking to upgrade the rental property with “condo finishes.”

The property will be named The Devorah at Chelsea, after Toledano’s wife.

Toledano purchased six properties in Brooklyn and three properties on East 13th Street in the last year.

  • richjew

    Rafi Toledano is an investor? Haaa
    He started Truman after leaving/getting thrown out (depends who you ask.) Of Weissman Realty.
    Hertz fronts for him on brokerage bec. Rafi cant/wont get a license

    • MGMMGT

      Brush up on your fact before throwing around slanderous accusations on public forums. Get a life.

      • rental guy

        Rafis in heavy with weinberger/Miller
        might be using their money. .

        • richjew

          Is he or is he not a broker?

          • rental guy

            Most brokers today. buy check
            youngreiz doshi gross etc
            Can go both ways.

  • mike

    He most likely is using uncle Arons Money. Unlikely miller/weinberger would fund this sort of purchase. Aron on the other hand makes more sense. He is a broker who happens to invest like many others in the business.

    • richjew

      Everyone else at least denies that they are investing.

    • Mutlifamilyguy

      Uncle Aron and his nephew make quite an interesting couple. I’m doubtful that he would be behind this though. Steep price and betting on a redevelopment by a guy who talks faster then himself is not his usually modus operandi.

  • boobytrickle666

    This scumbag had something to do with buying my friend’s building awhile ago, it makes me sick that he’s moving down the block from me… Any rent-stabilized tenants should expect low-ball offers, then insane threats of illegal lockouts and turning off the electricity and water if they don’t move out. If the city housing agencies weren’t asleep Toledano would be sharing a jail cell with Steve Croman and Samy Mahfar.

  • Johnny Boy

    the noise from construction crews will be ongoing and, with city variances so he can start collecting more money quicker, will doubtless start at 7 am and continue through the weekends. And when will the 19-story building on the north side of 17th st just east of 6th ave commence ?