Dalan Management Files to Foreclose on Steve Croman

Steve Croman’s multifamily portfolio is starting to show cracks.

Dalan Management is moving to foreclose on the controversial landlord after buying a pool of loans backing his buildings several months ago.

The Wrublin family’s firm filed lawsuits Tuesday seeking to foreclose on four of Croman’s properties that have debt totaling $27.5 million. The move comes after Dalan purchased a $140 million portfolio of the landlord’s loans from Axos Bank in October — and adds to Croman’s woes.

He recently lost a yearslong battle for control of a Kips Bay property when Maverick Real Estate Partners took over the building in a foreclosure sale in November.

Croman, who went to jail for mortgage fraud and earned a reputation as one of the city’s worst landlords for harassing tenants, has a large multifamily portfolio spread across Manhattan. These foreclosure cases could hint at more distress across his holdings.

Representatives for Croman and Dalan could not be immediately reached for comment.

The largest of the properties in the Dalan action is the 48-unit 20-22 Prince Street in NoLita, which Croman bought in 2006 for just shy of $9 million. He took out a $13.75 million mortgage with Axos Bank in 2019.

The other properties are 221 Mott Street in NoLita (with a $5.75 million loan), 420-424 West 51st Street in Hell’s Kitchen ($4.65 million) and 1978-1982 Third Avenue in East Harlem ($3.35 million).

Croman defaulted on the loans when they matured in 2023 and 2024, according to Dalan’s lawsuit. Court filings also say that the landlord defaulted on a $31 million backing a townhouse at 12 East 72nd Street, though it doesn’t appear a foreclosure case has been filed on that property.

Croman bought the empty, six-story building in 2022 and reportedly had plans to convert its 23 apartments into a single mansion, though it’s not clear what — if anything — ever came of the plans.

The foreclosure cases come after a protracted battle Croman had with Maverick. Croman defaulted on a $23 million loan backing 208-214 East 25th Street in Kips Bay in 2021, and his lender — Miami-based BankUnited — sold the loan to David Aviram and Ted Martell’s debt investment firm.

Croman fought foreclosure and even threw the property into bankruptcy, claiming he was the victim of a predatory lending scheme.

Maverick took over the property at a foreclosure auction in November.