Danny Wrublin’s Dalan Real Estate bought about $140 million in loans backing properties owned by Steve Croman, who has faced challenges throughout his portfolio.
The debt covers 25 mixed-use apartment buildings in Manhattan totaling about 350 apartments, a source with knowledge of the purchase told The Real Deal.
It’s not clear what the company has planned for the debt. The loans are currently performing, the source said, though Croman has struggled with some properties.
Notably, Maverick Real Estate in June won a court order allowing it to foreclose on four of Croman’s multifamily buildings in Kips Bay. Croman is appealing the decision.
Croman, when asked about the Dalan purchase, pointed out that he’s current on the loans and said he hasn’t yet spoken with Dalan about the debt.
“We’ll see what happens,” he said.
A representative for Dalan declined to comment on the purchase.
Croman, who gained notoriety for harassing tenants and going to jail for mortgage fraud, resumed management of his buildings in early 2023.
His portfolio has faced challenges from the pandemic and rising interest rates. He’s also done some rare sales.
In 2022 he sold eight walkups for $61 million. Earlier this year he sold a Hell’s Kitchen building for $20 million.
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He said he’s also lining up some acquisitions.
“We’re buying things too,” he said. “Prices have come down a lot.”