Controversial landlord Steve Croman faces a new lawsuit alleging he failed to pay rent on a Noho office space.
The suit was filed last month by Lafayette-Astor Associates, an entity connected to Jeff Gural’s GFP Real Estate. The plaintiff claims Croman and his firm failed to pay $900,000 in rent and other fees at 740 Broadway in Manhattan. Bills go back to 2022, and Croman, who guaranteed the lease, hasn’t made any payments since August of 2024, the suit alleges.
This is the fourth case between Croman and the landlord. Croman’s firm began leasing the second-floor office space in 2017, which had a base rent of $62,403 a month, per court records. In 2022, Lafayette-Astor sued for $316,539 in back rent on the office, which resulted in a settlement and payment plan for Croman. But by 2024, the Lafayette-Astor turned to the court for enforcement, which ordered Croman to turn over his management stakes in several LLCs. The company also won an eviction suit against Croman, but he and his firm vacated the premises before the official date.
Stephen Lasser, an attorney representing Lafayette-Astor, said they are pursuing collection against Croman personally and his firm, alleging that Croman has assets at his disposal.
Croman earned a reputation as one of New York City’s worst landlords over his decades in the multifamily market. He spent eight months in prison after a 2017 mortgage and tax fraud case. That same year, he entered a settlement with the state attorney general’s office to pay $8 million in restitution to tenants he allegedly defrauded and to hand over management of his properties for five years. But when Croman got out of prison in 2018, he started acquiring new buildings again.
Last year, Croman unloaded a quartet of Hell’s Kitchen walk-ups for $20 million.
But Croman’s multifamily portfolio has started to show cracks in recent months. Dalan Management recently moved to foreclose on four of Croman’s properties in March, with debt totaling $27.5 million. In April, a successor to Signature Bank initiated the foreclosure process on one of Croman’s properties on East 119th Street, alleging $5.7 million in debt.
Croman did not respond to requests for comment by press time.
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