The Real Deal New York

Toledano to reap windfall from $36M sale of four buildings

In the past year, 26-year-old investor paid a combined $11M for them as part of portfolio

September 07, 2016 12:14PM
By Mark Maurer Twitter_logo_blue copy

218 East 27th Street, Raphael Toledano (credit: Michael McWeeney), and 58 St. Mark's Place

From left: 218-220 East 27th Street in Kips Bay, Raphael Toledano (credit: Michael McWeeney), and 58 St. Mark’s Place in the East Village

Raphael Toledano’s Brookhill Properties is in contract to sell four East Side walk-up rental buildings in two separate deals for a combined $35.6 million, sources told The Real Deal.

Renaissance Realty Group, a Midwood-based investment firm led by Adir Cohen, is buying a pair of East Village properties at 221 East 10th Street and 58 St. Mark’s Place for $22.5 million. The sales would represent a sizable increase in value – from $2.95 million and $3.8 million in November 2015 to $10 million and $12.5 million respectively, according to sources and property records.

Separately, an unidentified private investor who specializes in office and retail properties is picking up two contiguous Kips Bay buildings at 218 and 220 East 27th Street for $13.1 million, less than two months after Brookhill TRData LogoTINY bought them for $4.6 million, according to sources and property records.

Technically, the trades would net the controversial 26-year-old investor a more than three-fold profit in just under a year.

However, all four buildings are part of an 11-building, $43 million portfolio that Toledano has been buying from the Tabak family in a series of purchases since late last year. Sources said Toledano has closed on the purchases on all but one in the package.

Given that they are part of a portfolio, each building’s price at the time Toledano bought them was allocated based on the total price, not necessarily respective to their individual value, said Friedman-Roth Realty Services’ Eric Roth, who is brokering the Kips Bay deal with Joel Radmin.

Both deals are slated to close in the next month or so, sources said.

A spokesperson for Toledano declined to comment, while Renaissance Realty Group could not be reached.

Together, the properties contain 83 rental apartments and four retail spaces. The apartments are a mix of market-rate and rent-stabilized. Market-rate rents range from $3,000 to $4,200 per month at the East Village buildings and from $2,800 to $3,900 per month at the Kips Bay buildings, sources said.

Although Bookhill has been extensively renovating many of its largely rent-stabilized buildings, the properties under contract were not renovated since he purchased them.

Bridge lender Brick Realty Capital owns the debt on the St. Mark’s Place and East 27th Street buildings, records show.

Toledano is looking to sell more of his East Village-centric holdings, including a portion of a separate 17-building, $97 million portfolio he bought from the Tabaks in September 2015. Market observers noted at the time that the price was an incredible bargain, though Toledano is also said to be over-leveraged.