Signature Bank made a collateral loan to Madison Realty Capital in 2015. Madison then extended a $124M loan to Raphael Toledano, allowing him to purchase a portfolio of residential buildings in Manhattan, primarily in the East Village.
Toledano then set about trying to remove as many tenants as possible, including those protected by rent regulation. He threatened lawsuits, offered buyouts that he later reneged on, allowed unsafe demolition to occur and otherwise made life difficult for his tenants.
The TTC reached out to Signature Bank, to discuss this sequence of events. On February 3rd, 2017, a meeting between representatives of Signature Bank and the TTC took place at Signature Bank’s offices. Also attending were members of the Cooper Square Committee, ANHD, City Council Member Rosie Mendez and State Senator Brad Hoylman.
The TTC extended a set of demands to Signature Bank. It and Signature’s responses can be read here.
On February 28th, 2017, Madison Realty Capital started foreclosure proceedings against Toledano’s LLCs for fifteen of the buildings, as he defaulted on his loan.
On March 28th, 2017, those LLCs filed for Chapter 11 bankruptcy protection, to stya the foreclosure. The Chapter 11 filing was not done by Toledano, however, but by David Goldwasser, to whom Toledano apparently and secretly had given a controlling interest in the ownership of these buildings.