Toledano reaches settlement on unpaid rent — so long as he only vapes in his apartment

The landlord previously claimed he was a rent-stabilized tenant when Simon Baron moved to evict him

TRD New York /
Feb.February 02, 2018 05:34 PM

Raphael Toledano and 393 West End Avenue

After claiming to be a rent-stabilized tenant, Raphael Toledano reached a settlement on $124,200 in unpaid rent for his luxury apartment on the Upper West Side, housing court records show. One of the key stipulations: No vaping in the halls.

Simon Baron Development, the owner of 393 West End Avenue, moved to evict Toledano last spring after he overstayed a short-term lease at his $13,800-a-month apartment. Toledano, who was previously investigated by New York State Attorney General Eric Schneiderman for alleged harassment of rent-stabilized tenants, then claimed the unit should be rent-stabilized, giving him the right to continue living in what he said was an illegally deregulated apartment. He evidently stopped paying rent for nine months.

But in December, Simon Baron and Toledano agreed to the following terms: Toledano will pay Simon Baron $82,800 and leave the building for good by the end of April. And until he leaves, he’s forbidden from smoking tobacco, including vaping, in public areas of the building, according the settlement.

The deal appears to be good one for the financially troubled Toledano, whose real estate businesses have been mired in Chapter 11 bankruptcy proceedings after nearing default on debt for his portfolio of East Village buildings. The $82,800 he agrees to pay Simon Baron comes out to just 50 percent of the total rent he owes from March 2017 through February 2018, according the agreement.

To fight Simon Baron, Toledano tapped landlord attorney Jeff Goldman, who is also Donald Trump’s real estate attorney. Toledano’s legal team first answered Simon Baron’s eviction proceeding with a counter-claim alleging what would have amounted to tens of thousands of dollars in rent overcharges from illegally deregistering the formerly rent-stabilized apartment.

Toledano and his attorney did not immediately respond to requests for comment, and Matt Baron declined to comment.

Toledano’s lender, Madison Realty Capital, is in the process of taking over 15 of his East Village rental buildings, despite an attempt from Schneiderman to block the transfer last year. Schneiderman’s office alleged that Madison had employed a predatory scheme with knowledge of Toledano’s probable default, and further alleged that Madison lent to Toledeno with the knowledge that he would charge illegal rents, file frivolous litigation and perform unlawful construction.

In 2016, Toledano agreed to pay $1 million to tenants at one of his East Village buildings after rent-stabilized tenants said his management company, Goldmark Property Management, had been aggressively intimidating them into leaving their homes.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Fed Board Governor Lael Brainard (Getty, iStock)

Fed wants banks to step up lending in low-income areas

Fed wants banks to step up lending in low-income areas
(iStock)

Is winter coming? Real estate stocks dragged down by 4th week of market decline

Is winter coming? Real estate stocks dragged down by 4th week of market decline
Costa Constantinides (Getty)

Council advances bill to cap emissions at some rent-regulated buildings

Council advances bill to cap emissions at some rent-regulated buildings
From left: Michael Fuchs, Aby Rosen, Brandon Singer and Michael Cody (Getty, iStock)

Aby Rosen, Michael Fuchs back new retail brokerage

Aby Rosen, Michael Fuchs back new retail brokerage
New York City Mayor Bill de Blasio, President Donald Trump, and New York Governor Andrew Cuomo (Credit: Yana Paskova/Getty Images, Chip Somodevilla/Getty Images, and Drew Angerer/Getty Images)

Trump threatens to yank $7B from “anarchist” NYC

Trump threatens to yank $7B from “anarchist” NYC
arrow_forward_ios

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

Loading...