Dalan Takes Another Foreclosure Swipe at Steve Croman

Steve Croman is facing yet another foreclosure — and from a familiar foe.

Dalan Real Estate filed separate lawsuits against the infamous landlord over alleged loan defaults tied to seven rental properties in Manhattan, according to court documents. Croman is accused of defaulting on loans totaling roughly $39 million.

Croman allegedly stopped making payments on the loans a year ago, according to the court filings. One loan is a $4.6 million mortgage tied to 44 Avenue B — where Croman allegedly owes $4.2 million — while the other is a $34.2 million mortgage collateralized by a handful of properties: 1345 Amsterdam Avenue, 277 East 10th Street, 279 East 10th Street, 321 West 16th Street, 521 East 5th Street and 52 Barrow Street. Croman allegedly owes $25.1 million on that debt.

Dalan is seeking to foreclose on the properties and have them auctioned. Dalan and Croman did not immediately respond to requests for comment from The Real Deal.

The two parties know each other well.

Last month, Croman began battling a UCC sale on his $53 million Upper East Side home, initiated by Dalan. Croman argues the auction is not commercially reasonable, though he allegedly defaulted on a $31 million loan.

Earlier last year, Dalan moved to foreclose on four of Croman’s properties that have debt totaling $27.5 million; Dalan purchased a $140 million portfolio of the landlord’s loans from Axos Bank in October 2024.

It’s another headache for Croman, whose lenders are together trying to foreclose on more than $231 million in loan principal. Croman is also in the midst of a fight with his father, Edward Croman, who is trying to dissolve the family partnerships, alleging mismanagement.

Croman the younger is one of the only New York landlords to have been sent to prison for real estate-related crimes. Once named one of the city’s worst landlords, Croman served eight months in state prison related to mortgage and tax fraud and paid $8 million in restitution related to accusations of tenant harassment.