The Real Deal New York

Toledano is shopping six of his East Village buildings

Brookhill just bought them in September as part of $97M Tabak portfolio

July 08, 2016 01:00PM
By Mark Maurer Twitter_logo_blue copy

Toledano EV

From left: Raphael Toledano (credit: Michael McWeeney), 27 St. Mark’s Place and 66 East 7th Street in the East Village

Raphael Toledano’s Brookhill Properties is looking to sell six multifamily buildings in the East Village-centric portfolio, less than a year after buying them, The Real Deal has learned.

The six walk-ups – which include 27 St. Mark’s Place and 66 East 7th Street – are expected to fetch north of $50 million, according to sources. The buildings were part of the 17-building, $97 million package the controversial 26-year-old investor acquired from the Tabak family in September 2015, a price that market observers said at the time was an incredible bargain.

To acquire the portfolio, Toledano took out two mortgages from Madison Realty Capital totaling $124 million for the acquisition as well as planned renovations. The mortgages were an example of multiple financings that led experienced real estate players to describe Toledano as overleveraged.

Brookhill has been tackling extensive renovations at many of the buildings, making way for rent hikes and destabilization.

A Marcus & Millichap team led by Joseph Koicim and Peter Von Der Ahe are marketing the six buildings. They declined to comment, as did a spokesperson for Brookhill. Sources said the buildings are being marketed as a value-add repositioning opportunity.

The majority of the apartments are rent-stabilized units. The 2014 net operating income was $414,149 for 27 St. Mark’s Place and $225,686 for 66 East 7th Street, city records show.

Last month, Toledano paid north of $1 million in a settlement to tenants at one of his buildings, 444 East 13th Street, amid claims of tenant harassment.

Toledano is in the process of buying 11 East Village buildings for a combined $43 million – also from the Tabaks. He recently sold a few buildings in Murray Hill and Gramercy Park for an undisclosed price.

In an April interview, he told TRD he plans to keep his core East Village assets “for eternity.”

“I don’t like the concept of selling real estate,” he said. “These are things I buy to own and to pass on to my kids — and to pass on to their kids.”

 

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