Alleged slumlord sells distressed portfolio to Queens owner for $22M therealdeal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from therealdeal.com Daily Mail and Mail on Sunday newspapers.
US banks’ unwillingness to lend and building owners’ desperation for credit have created a standoff. Some landlords threaten to default, betting banks and investors stand to lose more in a foreclosure.
The company also will need to register almost 200 of the units with the state Division of Housing and Community Renewal at or below a monthly rent of $2,000. Around 50 of them will be registered at or below $1,000 per month.
James’ first investigation into Toledano began after the state’s Tenant Protection Unit began receiving numerous complaints from tenants and community members about unsafe construction practices and harassment.
The investigation found that Toledano designed renovations in the buildings, which included mostly rent-stabilized apartments, to increase rents above the threshold needed to remove apartments from rent control. Madison knew about his illegal plans, James said, but loaned him more than $120 million to buy the properties anyway.