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A high-stakes dispute is unfolding on East 72nd Street, where landlord Steve Croman is trying to keep his Upper East Side mansion from being swept up in a lender’s planned auction. The Real Deal first reported the latest turn in Croman’s long-running legal and financial troubles.
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According to TRD, Croman is fighting to prevent the sale of equity interests tied to his six-story home at 12 East 72nd Street — a property he owns with his wife, Harriet, and shares with their son. The family allegedly defaulted on a $31 million loan taken out in 2023, and the lender now intends to move forward with a Uniform Commercial Code (UCC) sale on December 11.The mansion, once a 23-unit rent-stabilized building, was purchased in 2002 by Steven, Edward and Harriet Croman for $5.5 million. Croman cleared the building of tenants and converted it into a sprawling single-family residence reportedly outfitted — at least on paper — with amenities like indoor pools, a koi pond, and even a basketball court. The city today values the 15,000-plus-square-foot home at roughly $53 million.
Croman argues the lender’s auction plan is flawed and would lead to an artificially low sale price. In court filings, he and his wife claim the property’s uniqueness requires a more deliberate marketing process, accusing the lender of restricting interest through nondisclosure agreements and inadequate public advertising. They’re asking a judge to halt the sale entirely.
The loan in question was originally issued by Axos Bank, but a Dalan Real Estate–connected entity — NYC Multifamily Portfolio LLC — later acquired a large tranche of Croman-related loans and has since initiated multiple foreclosure actions. TRD notes that this UCC auction is just one piece of a far larger financial picture: Croman is currently a defendant in 28 foreclosure cases tied to more than $231 million in principal.
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Legal tensions within the family are also part of the backdrop. Croman has blamed his inability to refinance on a separate dispute with his father, Edward, who is seeking to dissolve family partnerships and has accused Steve of mismanagement.Croman’s long history in New York real estate — including an eight-month prison sentence for mortgage and tax fraud, as well as an $8 million settlement on allegations of tenant harassment — looms over the proceedings.
Attorneys for the involved parties did not immediately respond to TRD’s requests for comment.
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