Dalan Real Estate has intensified its legal campaign against prominent New York landlord Steve Croman, filing four new foreclosure lawsuits last week in Manhattan. The actions target nine rental buildings across the borough, alleging Croman has defaulted on loan payments connected to the properties.
The latest legal filings seek to force the sale of a portfolio comprising 128 residential units, some of which are rent-stabilized. This move represents a significant escalation in the ongoing financial dispute between the two real estate entities.
Key Takeaways
- Dalan Real Estate filed four new foreclosure lawsuits against entities controlled by Steve Croman.
- The lawsuits target nine Manhattan apartment buildings containing a total of 128 units.
- Dalan alleges Croman defaulted on mortgages originally totaling $43.4 million.
- This brings the total number of foreclosure cases initiated by Dalan against Croman to at least 11.
Details of the New Lawsuits
The core of the new legal action revolves around a portfolio of mortgages Dalan acquired in 2024. These loans, originally underwritten by Axos Bank between 2019 and 2021, amount to $43.4 million and are secured by the nine properties in question.
The lawsuits allege that Croman's companies failed to make required payments last month, triggering the defaults that led to the foreclosure filings. Dalan is now asking the Manhattan State Supreme Court to authorize the public auction of the buildings to satisfy the outstanding debt.
Properties at the Center of the Dispute
The nine buildings are spread across several sought-after Manhattan neighborhoods:
- Harlem: Four six-story buildings at 326-338 East 100th Street, which contain 92 units.
- Lower East Side: Properties at 151 and 153 Rivington Street, as well as 79 Essex Street.
- East Harlem: A building located at 2154 Second Avenue.
- East Village: A property at 102 East Seventh Street.
The largest asset group in this action is the East 100th Street complex. Records show Croman acquired these four buildings in 2009 for $12.2 million. In 2019, he secured a $34.4 million mortgage from Axos Bank for these properties, which is now held by Dalan.
A Widening Financial Conflict
These four lawsuits are not an isolated event but rather the latest chapter in a broader, aggressive strategy by Dalan Real Estate. The firm, led by Daniel Wrublin, has been systematically pursuing legal action against Croman for several months.
In January, Dalan initiated two other lawsuits against Croman, seeking to foreclose on seven different properties tied to approximately $39 million in loans. The company claimed Croman had stopped making payments on that debt nearly a year prior.
The Loan Portfolio Acquisition
The foundation for this widespread legal action was laid in October 2023, when Dalan Real Estate purchased a substantial portfolio of Croman's loans from Axos Bank. The total value of the acquired debt was reported to be around $140 million. By acquiring the debt, Dalan effectively became Croman's lender, giving it the power to initiate foreclosure proceedings in cases of default.
Including the most recent filings, Dalan now has at least 11 active foreclosure cases against the landlord. This sustained legal pressure suggests a calculated effort to take control of a significant portion of Croman's real estate holdings.
Personal Assets Also Targeted
The conflict extends beyond commercial rental properties and into Croman's personal assets. Dalan previously moved to auction Croman's personal residence, a luxurious mansion on the Upper East Side valued at $53 million.
That action was initiated after Croman allegedly defaulted on a separate $31 million loan secured by the home. Croman has fought back against the planned UCC sale, arguing in court that the proposed auction is not commercially reasonable. The outcome of that dispute remains pending.
A Landlord with a Contentious History
Steve Croman is a well-known figure in New York's real estate world, often for controversial reasons. He is one of the few landlords in the city's history to serve prison time for crimes related to his real estate business.
Croman previously served an eight-month jail sentence after pleading guilty to charges of mortgage and tax fraud. As part of that case, he also paid an $8 million settlement to resolve a civil case that accused him of harassing tenants to force them out of rent-stabilized apartments.
His reputation as one of the city's "worst landlords" has followed him for years. Beyond his legal troubles with Dalan, Croman is also reportedly in a dispute with his father, Edward Croman, who has sued to dissolve their family real estate partnerships, citing allegations of mismanagement.
As Dalan continues to apply pressure through the court system, the future of these 128 apartments and the broader Croman portfolio hangs in the balance. Neither Dalan Real Estate nor representatives for Steve Croman have issued public comments on the latest lawsuits.
