Steve Croman Lawsuits Pile Up

If it feels like Steve Croman has been everywhere lately, it’s because the legal hits just keep coming.

The latest one is hitting home, literally. The Upper East Side townhouse he spent years converting from a 23-unit rent-stabilized building into a personal mansion is inching toward a UCC sale after he allegedly defaulted on a $31 million loan.

The lender wants to auction off the equity interests this month, but Croman and his wife are scrambling in court to hit pause, arguing the process is being rushed and the property is too unique to be shopped quietly and to a limited pool of bidders.

That fight over 12 East 72nd Street lands on top of what has become a full-scale legal siege this year. Behind the scenes, lenders have stacked up more than two dozen foreclosure actions tied to debts totaling over $231 million in principal. Several of those suits come from Orange Owner LLC, an affiliate of Bellwether Asset Management, which scooped up a chunk of Croman-linked loans from Flagstar after New York Community Bank’s collapse. Delaware Trust has piled on too, accusing Croman’s entities of letting basic obligations go unpaid.

Many of Croman’s Manhattan assets were picked up years ago, refinanced during better times, and are now buckling under the pressure of higher rates and the post-2019 rent-law environment. Several cases already have receivers in place. And lenders aren’t shy about noting how widespread the alleged defaults have become.

The trouble isn’t limited to the residential side. Croman’s former office landlord says he walked away from more than $900,000 in unpaid rent on a Noho space, racking up multiple lawsuits and even an eviction judgment. That plaintiff is now pursuing Croman’s ownership stakes in various LLCs because, according to court filings, there are no personal bank accounts to tap.

Then there’s the family feud. His father, Edward, is suing to unwind their partnerships across a 64-property portfolio, accusing his son of withholding distributions, hiding proceeds from property sales and cutting him out of refinancing deals. Steve’s camp says the 87-year-old is being manipulated by outsiders, but the allegations show how chaotic the situation around the portfolio has become.

In the backdrop of Croman’s challenges is also a stronger push to hold landlords more accountable for misconduct. Lawmakers and the Manhattan DA unveiled a bill earlier this year that would stiffen criminal penalties for systematic tenant harassment. At the press event, one assemblymember even recalled his own first apartment, owned by Croman, as an example of why harsher tools are needed.

Croman has weathered high-profile trouble before, including an eight-month prison stint and an $8 million restitution deal. But the combination of escalating debt, rapid-fire filings, a widening cast of creditors and a family fight over control suggests this round may be different.

There was plenty of other real estate news this week. Recently released documents revealed Jeffrey Epstein’s real estate interests, the Alexander brothers prepare to go to trial and we look back at some notable real estate figures we lost in 2025.

Documents highlight Jeffrey Epstein’s real estate interests

Among the more than 20,000 documents obtained by the House Committee on Oversight and Government Reform from Jeffrey Epstein’s estate and released to the public in November were emails with links to The Real Deal articles and what appears to be a saved or printed TRD web story from June 2019. The emails and TRD articles touched on a Palm Beach development deal, a members-only club and a dealmaker who faced tax issues.

The Alexanders prepare to go to trial

Since being arrested in Miami in December 2024, the Alexander brothers have been in limbo, awaiting a verdict on the federal charges that took shape after years of rumors and whispered allegations gave way to a crush of lawsuits and investigations. But the months of uncertainty are nearing an end: their long-anticipated trial before a judge and jury in the Southern District of New York is slated to commence on Jan. 5.

Behind Patrick Carroll’s effort to rehab his image

Patrick Carroll has been one of the country’s most successful multifamily syndicators since the 2010s. His path had not been smooth: There were arrests, lawsuits, restraining orders and a messy divorce. But by buying into the Sun Belt boom early, he’d managed to do $9 billion in transactions by age 40. In 2023, he seemed to reach an apex, selling his namesake firm, Carroll Organization, to RMR Group for $80 million. On the other side of the sale lay a bleak period.

State signs off on three casinos for NYC

New York is on the verge of locking in three new casinos after a state board recommended licenses for Steve Cohen’s Metropolitan Park, Bally’s Ferry Point plan and Resorts World’s massive Queens expansion. The board leaned heavily on economic impact when scoring the bids, weighing investment levels, job creation and financing strength before sending the proposals to the Gaming Commission for a final signoff.

In memoriam: Notable real estate figures lost in 2025

Every year ends with an incongruous mix of emotions — seasonal cheer, but tempered by nostalgia and mourning for people who are newly missing from holiday gatherings. These losses are perhaps more profoundly felt in the real estate world, which is not quite a family but often feels like one because its members regularly gather for business deals, events or just to break bread.

Distress call: Foreclosures threaten 13 South Florida dev sites

South Florida’s once-roaring development market is hitting a wall as 13 sites across the region slide into foreclosure or bankruptcy. Developers who banked on low rates and cheap construction financing during the pandemic boom are now getting squeezed by higher interest costs, a 30 percent jump in construction expenses and equity partners who have grown far more selective.

How a nondescript inland development became Palm Beach County’s billionaire bunker

Deep in Palm Beach County, out where the suburbs meet the swamp, dirt has turned to gold. The miracle has unfolded behind the guarded gates of Stone Creek Ranch, where Mark Wahlberg dropped $32.6 million on a gut-renovated 17,800-square-foot mansion in October, triggering a rush for homes in the neighborhood. But as much as this inland compound of megamansions seemed to spring to prominence overnight, its ascendancy was 25 years in the making.

Brookfield-owned Bank of America Plaza debt for sale after $400M default

Another major Brookfield tower has hit the distressed market as Colliers begins shopping the defaulted $400 million CMBS loan tied to Bank of America Plaza in Downtown Los Angeles. The 57-story, 1.4 million-square-foot tower was appraised at just $212.5 million last year, barely a third of its value a decade ago and well below the debt balance, setting expectations for steeply discounted bids.