The Real Deal New York

Toledano secures $124M loan for East Village portfolio buy

$97M acquisition subject of lawsuit from Toledano's uncle Aaron Jungreis

September 17, 2015 05:20PM

From left: 253 East 10th Street, 27 St. Mark’s Place and Raphael Toledano

From left: 253 East 10th Street, 27 St. Mark’s Place and Raphael Toledano

Raphael Toledano is funding his recent acquisition of a 16-building East Village portfolio with a $124 million loan from Midtown-based Madison Realty Capital.

Toledano’s Brookhill Properties closed on the financing Sept. 10 and will use the proceeds to fund its $97 million acquisition of the East Village portfolio, as well as future renovations on the multifamily and mixed-use properties.

The financing consists of a first and second mortgage with terms in the one-to-three-year range, Madison Realty Capital’s Josh Zegen told the New York Observer, with the firm acting as a single-source lender.

Toledano bought the 16 buildings in the portfolio earlier this month from their longtime owners, the Tabak family. The deal amounted to a total of 301 apartments and 15 retail spaces between East 5th and East 12th streets in the East Village.

Broker-turned-investor Toledano was hit with a lawsuit over the deal late last month from his uncle, Rosewood Realty Group’s Aaron Jungreis. Toledano allegedly agreed to purchase the portfolio alongside Jungreis in a 50-50 joint venture, according to the lawsuit, before squeezing Jungreis out of the deal. [NYO]Rey Mashayekhi