The Real Deal New York

Toledano buys 16-building Village portfolio amid Jungreis suit

The $97M package includes 301 apartments and 15 retail spaces
September 10, 2015 11:00AM

The intra-family lawsuit hanging over Raphael Toledano’s head did nothing to slow the investor’s drive to close on the hefty East Village multifamily portfolio at the center of the dispute.

Toledano’s Brookhill Properties completed the purchase of 16 buildings from the Tabak family, paying $97 million.

The broker-turned-investor was hit with a suit late last month over the impending deal by his uncle, Rosewood Realty Group’s Aaron Jungreis, who claimed Toledano agreed to pursue the purchase together, as a 50-50 joint venture, before bolting and doing the deal on his own. Several companies affiliated with the Tabak family are also named in the lawsuit.

The portfolio amounts to a total of 301 apartments and 15 retail spaces, according to a press release.

The addresses of the properties are: 253 East 10th Street, 510 East 12th Street, 228 East 6th Street, 329 East 12th Street, 327 East 12th Street, 334 East 9th Street, 323-325 East 12th Street, 95 East 7th Street, 514 East 12th Street, 27 St. Mark’s Place, 231-233 East 5th Street, 229 East 5th Street, 223 East 5th Street, 235 East 5th Street, and 66 East 7th Street.

In August, state officials served subpoenas on Toledano’s Goldmark Property Managmenet, investigating whether the company threatened tenants with police raids, evictions and the shut off of essential service. In April, Toledano bought a 39-unit residential building at 125 West 16th Street in Chelsea for $41.5 million.

In response to the state investigation of the Chelsea building, a spokesperson for Toledano said: “Since being made aware of the conditions at 13th Street, Mr. Toledano immediately addressed the tenants’ concerns. He fired the management company, Goldmark Property Management, which Mr. Toledano has no ownership stake in. Most importantly after assuming control he has aggressively and expeditiously worked to repair all open violations and conditions at the building and has sought the cooperation of the Urban Justice Center to coordinate the work with the tenants.” – Ariel Stulberg