"A federal bankruptcy judge ruled to authorize the sale of 5,100 mostly rent-stabilized units in New York City in a deal that Zohran Mamdani tried to stall on the day he swore in as the new New York City mayor. With the decision, international real estate firm Summit Properties USA will acquire 93 buildings from Pinnacle Group, which filed for Chapter 11 bankruptcy last year, in a deal brokered by Eastdil Secured."
"The disposition and the ruling that preceded it opened many observers' eyes to the challenges Mayor Zamdani faces as he tries to fulfill his campaign promises to expand rent stabilization and control as a housing affordability solution for New York City. Judge David Jones allowed the auction to proceed last week, despite Mamdani's efforts, tenant complaints and New York Attorney General Letitia James's questions about Summit's purchase."
Judge David Jones authorized the sale of 5,100 mostly rent-stabilized units, allowing Summit Properties USA to acquire 93 Pinnacle Group buildings in a deal brokered by Eastdil Secured. The ruling proceeded despite objections from Mayor Zohran Mamdani, tenant complaints, and questions from New York Attorney General Letitia James about Summit's portfolio and familial ties to Pinnacle's owner Joel Weiner. The judge wrote that Summit intends to operate the properties properly and has demonstrated adequate financial wherewithal. Mamdani sought a 30-day delay to find an alternate buyer but was denied, marking an early setback for his housing agenda. Pinnacle has a history of aggressive rent practices and prior legal settlements.
Read at www.housingwire.com
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