The Real Deal New York

Raphael Toledano accused of not paying his rent: lawsuit

Landlord HRC Corp. is asking for $6.4M in total damages

December 03, 2015 01:35PM
By Ariel Stulberg

Raphael Toledano

From left: Raphael Toledano and 91 Fifth Avenue in the Flatiron District

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.

According to the suit, Toledano’s Brookhill Properties signed a lease for 8,000 square feet, the entire sixth floor, at 91 Fifth Avenue back in June.

The firm agreed to pay $51,300 per month between June and October and an abated rent of $25,700 per month for the following seven months, as long as Brookhill didn’t default.

Toledano guaranteed the agreement personally, according to the suit.

“We are not in default of the lease,” a spokesperson for Brookhill wrote in a statement.

HRC did not immediately respond to a request for comment.

The landlord has owned the eight-story, 52,000-square-foot office and retail building since before 1970, the last year covered by public records.

Back in September, Toledano closed on the purchase of a portfolio of 16 buildings in the East Village, paying $97 million to the Tabak family. A month earlier, Toledano’s uncle, Aaron Jungreis, a broker at Rosewood Realty Group, filed suit against his nephew, alleging Toledano had frozen him out of the deal. That suit was settled shortly before the deal closed.

Toledano is also involved in a dispute with tenants at 444 East 13th Street, who have accused him of harassing them into quitting the building.