New York City Mayor Zohran Mamdani’s push to stop the bankruptcy sale of more than 5,000 rent-subsidized apartments in the city has been blocked, temporarily, by the federal courts.

Mamdani, who was sworn into office last week, directed the city’s Law Department shortly after taking over City Hall to intervene in the bankruptcy proceedings of more than 90 buildings with apartments all owned by Pinnacle, a real estate group.

The Mamdani administration says the company owes the city $12.7 million in unpaid fines for housing code violations. The company declared bankruptcy in May after defaulting on more than $560 million in loans.

But U.S. Bankruptcy Court judge for the Southern District of New York David Jones has declined the city’s motion to intervene in the legal fight, and reportedly informed the city that the bankruptcy sale will proceed.

Pinnacle Group, which is owned by billionaire Joel Wiener, is one of the largest landlords in New York City with roughly 140 buildings and 9,000 apartments, according to the court filings. After the company filed for bankruptcy last year, Summit Real Estate Holdings made a $450 million offer to buy dozens of buildings in Brooklyn, Manhattan, Bronx and Queens. The sale must be finalized by Jones before it can proceed.

More here

Tagged: Partner BACK TO HOMEPAGE