UPDATE 1-Spitzer looking at distressed real estate - source

(Recasts, updates with source, spokeswoman comments, byline)

By Emily Chasan

NEW YORK, June 10 (Reuters) - Former New York Gov. Eliot Spitzer is looking at a number of options to possibly invest in distressed real estate, but does not yet have a formal plan, according to a source familiar with the matter.

Spitzer met with several former colleagues last month where they spoke about his interest in participating in his father's real estate business and in distressed assets created by the subprime crisis, among other things, the source said.

An earlier report in The New York Sun on Tuesday cited a source claiming Spitzer had approached Washington, D.C.-based labor union officials to pitch his idea for a vulture fund and that he was looking to pursue distressed real estate projects valued between $100 million and $500 million. Vulture funds invest in distressed assets.

A spokeswoman for Spitzer said the former governor's future plans are not yet clear.

"Mr. Spitzer is currently evaluating several longer term business ideas," his spokeswoman Brandy Bergman said.

Spitzer's father, real estate developer Bernard Spitzer, is a self-made multimillionaire known for building one of New York City's largest real estate firms.

The younger Spitzer resigned as governor in March after he was caught on a federal wiretap arranging to meet a prostitute in a Washington hotel room.

Two people who managed the prostitution ring already have pleaded guilty in the case. Spitzer has not been charged in the case and prosecutors refuse to say whether he will face criminal charges. (Additional reporting by Paritosh Bansal; editing by Carol Bishopric)