Toledano in contract to sell distressed Chelsea building

Private family office to buy 125 West 16th St. deed and note for $49M

New York /
Sep.September 27, 2017 03:04 PM

Raphael Toledano is in contract to sell a six-story Chelsea rental building, the single-most valuable property in his dwindling holdings, sources told The Real Deal.

A local private family office signed a hard contract to buy both the deed and the note on the distressed 39-unit property at 125 West 16th Street for a total of $49 million, according to William Schneider, an attorney who represents the buyer, AAK Acquisitions LLC.

In two separate deals, the buyer is paying $43 million for the note to the lender, Madison Realty Capital, and $6 million to Toledano’s Brookhill Properties and partners, Schneider said. The bulk of the funds will repay the debt; the rest is equity.

Madison has been putting the property through foreclosure proceedings since January.
Toledano bought the building for $41.5 million in 2015.  He said he planned to name it the Devorah, after his wife. Madison provided $34 million in financing, including $29.8 million up-front for the acquisition and a proposed expansion plan that Toledano later abandoned.

Representatives for Brookhill and Madison declined to comment.

Aaron Jungreis, president of Rosewood Realty Group, is brokering the deal. Jungreis is Toledano’s uncle, and once accused the investor of squeezing him out of a major East Village portfolio purchase. That suit was later settled. Jungreis declined to comment.

Toledano, a controversial 27-year-old landlord, is currently juggling several court cases and in the process of losing several key assets.

He is selling the deeds for a distressed, bankrupt 15-building portfolio — the one tied to the settled Jungreis suit — to lender Madison. He is also in a legal tussle with developer Michael Shah over a distressed walk-up at 97 Second Avenue. At the sane time, he is facing eviction at his $13,000-a-month Upper West Side apartment at a Simon Baron Development-owned building, where he claims to be a rent-stabilized tenant.


Related Articles

arrow_forward_ios
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
The Roger New York hotel at 131 Madison Avenue, Larry Korman of AKA Hotel Residences and Joe Lubeck of Electra America (Google Maps, Getty, Electra)
Electra America JV nabs Roger hotel for $71M discount
Electra America JV nabs Roger hotel for $71M discount
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Demir Sabanci and 41-47 West 57th Street (Sedesco, Google Maps)
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
From left: Alvin Dworman, 155 East 55th Street, 65 West 55th Street, and 210 East 58th Street (Getty, Google Maps)
Alvin Dworman Sells 3 Manhattan Buildings for $65M
Alvin Dworman Sells 3 Manhattan Buildings for $65M
Anita Durst and images of Chashama (Photos via Getty, Chashama)
Durst-backed nonprofit puts startups into empty storefronts
Durst-backed nonprofit puts startups into empty storefronts
Berkshire Bank headquarters in 4 East 39th Street (Google Maps)
Major FiDi landlord resigns as bank chairman after stock windfall
Major FiDi landlord resigns as bank chairman after stock windfall
Nationally, just under one-third of office workers have returned to the office spaces they occupied before the pandemic. (iStock)
Employers face uphill battle luring staff back to the office
Employers face uphill battle luring staff back to the office
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...