Bankruptcy judge approves plan to sell former East Village Toledano building

By Adam Pincus

A bankruptcy judge approved an order confirming a Chapter 11 plan that includes an auction to sell an East Village building once owned by Raphael Toledano. No broker has been identified in the court documents, nor has the stalking horse bid amount been disclosed.

The property, at 444 East 13th Street, attracted the attention of the city and state including New York State Attorney General Leticia James, whose office in March 2019 filed an objection to what they said was the debtor’s attempt to reject tenants’ rent-stabilized leases.

The amended Chapter 11 plan was filed in June 2020 and the order confirming the plan was filed in late July.

Toledano bought the building in January 2015 for $6.1 million amid a flurry of acquisitions and borrowed $6.45 million from Madison Realty Capital secured by the building. The debtor is controlled by by GC Realty Advisors of Florida., which put the property into bankruptcy on July 21, 2017. At the time, the filing claimed the property was worth $11 million.