Christopher Milito Quoted in The Real Deal on Dispute Involving Rental Portfolio

Partner Christopher Milito was quoted in The Real Deal’s recent article, “Ostads v. Ostad: Rent-Stabilized Distress Frays Family Ties.” The article detailed the legal battle between Morrison Cohen client Steven Ostad and his brothers, Michael and Edward Ostad. The elder Ostads, who run the fix-and-flip lender Flatiron Realty Group, have filed a lawsuit seeking to dissolve their partnership with Steven in order to distance themselves from 10 rental properties, which they allege are underperforming.

Christopher told The Real Deal that this is the second time in a week the brothers have filed effectively the same suit, noting that a judge rejected the first on April 14, 2025, writing the “allegations are insufficient to support [the] relief requested.”

“Their case didn’t even make it to the starting line, much less past it,” said Christopher, adding that Steve “sincerely doubts” the portfolio is underwater. “We’ll find out for sure when third-party subpoenas go out and the cash gets tracked under judicial supervision,” he concluded.

The brothers’ portfolio includes properties across the Bronx, East Harlem, Gramercy Park and Jackson Heights. Unit types vary, with some buildings fully rent-stabilized and others entirely free market. The elder Ostads claim the portfolio’s value has fallen below loan amounts and are seeking to sell the assets, which secure $80 million in debt.

Steven Ostad is represented by Morrison Cohen Partner Christopher Milito.

Read The Real Deal article here.