Madison Realty Capital, a private real estate investment firm heavily backed by public pension money, has been stuck with a nearly half-empty rental portfolio in Manhattan’s East Village. When the New York-based firm financed controversial landlord Raphael Toledano’s purchase of the 16 buildings in 2015, critics called the deal overleveraged. Madison lent $124 million for a portfolio that cost $97 million. But the lender had its reasons. The firm, led by Josh Zegen, Brian Shatz The post Pension fund money is getting tangled in some controversial housing deals appeared first on The Real Deal New York.