When Attorney General Letitia James won a court order banning landlord Raphael Toledano from New York real estate in 2022, the notorious tenant harasser was required to liquidate what was left of his portfolio — just two assets.
One, 449-341 Court Street, was already in contract. Toledano was given six months to sell the other, 305 Martense Street.
It took him nearly two years.
The bad-boy landlord unloaded the fully rent-stabilized, 28-unit East Flatbush walkup late last month for $5.2 million, property records show. A transaction attorney signed for the buyer.
A spokesperson for the attorney general’s office said the delays were not a concern because James was actively involved in ongoing negotiations.
The court order gave the attorney general’s office final say on a purchase to ensure the new owner could be trusted to keep the building in good shape and protect the “health, safety and legal rights of tenants.”
The spokesperson said a document memorializing the attorney general’s consent to the transfer should hit property records soon.
Toledano did not respond to a request for comment.
It’s also possible a rough sales market for rent-stabilized properties — one of the toughest in memory — delayed Toledano’s sale.
Owners of 100 percent rent-stabilized properties have struggled to find buyers since the 2019 rent law put a tourniquet on rent increases in those buildings. And lenders have pulled back from that asset class.
But discounts from owners pressured by maturing mortgages have engendered more trades this year, a first-quarter Ariel Property Advisors report found.
For 305 Martense, built in 1925, Toledano got $236 per square foot, below the first-quarter Brooklyn average of $297 for buildings that are over 75 percent stabilized. A two-room studio on the third floor listed three days ago for $850. Photos indicate it is in good condition.
James first dinged Toledano for renter harassment in 2019. An investigation found the East Village owner had pushed out rent-stabilized tenants using a combination of illegal construction, coercive buyouts and mismanagement.
Toledano agreed to pay $3 million in a settlement that included having an independent monitor keep tags on Toledano’s business and an independent management company running his properties. He was also forbidden to contact tenants.
The landlord violated numerous terms of the agreement, failing to pay his penalties, secure his monitor’s approval for deals or maintain his properties. In December 2020, James asked the court to enforce the penalty provisions of the agreement, which included a lifetime ban on real estate.
In January 2022, the court ordered a ban but said Toledano could petition the court in five years to get back in the game. His high-profile attorney, Benjamin Brafman, said at the time that Toledano intended to abide by the terms.
This article has been updated with comments from the attorney general’s office.
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