Dalan Real Estate Wages More War Against Steve Croman

A ceasefire between Dalan Real Estate and landlord Steve Croman does not appear to be in the offing anytime soon.

Dalan filed four foreclosure lawsuits in Manhattan State Supreme Court last week, Crain’s reported, looking to force the sale of nine rental buildings in the borough. Dalan alleges Croman missed loan payments for the debt tied to the properties last month.

The portfolio features 128 units, a select number of which are rent-stabilized. Axos Bank originated $43.4 million worth of mortgages across the portfolio between 2019 and 2021, which Dalan claims to have acquired in 2024.

The most notable properties are 326-338 East 100th Street in Harlem, four six-story buildings with 92 units between them. Croman acquired the properties in 2009 for $12.2 million and obtained an Axos loan in 2019 for $34.4 million. The same mortgage is attached to 151 and 153 Rivington Street on the Lower East Side.

Other buildings involved in the latest foreclosure suits include 79 Essex Street on the Lower East Side, 2154 Second Avenue in Harlem and 102 East Seventh Street in the East Village.

Croman did not immediately respond to the publication’s request for comment. Dalan also did not return a request for comment.

Dalan, led by Daniel Wrublin, has been all over Croman’s case in recent months. In January, the firm filed two lawsuits against Croman over alleged defaults on loans totaling roughly $39 million. The legal action seeks to foreclose and auction the seven properties after Croman allegedly stopped making payments on the loans a year ago.

Croman previously fought back against a UCC sale on his $53 million Upper East Side home, initiated by Dalan. Croman argued 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. In total, Dalan has at least 11 foreclosure cases going against Croman.

Croman is also in a fight with his father, Edward Croman, who is trying to dissolve the family partnerships, alleging mismanagement.

Steve 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.

— Holden Walter-Warner