NEW YORK (BLOOMBERG) — Newly-inaugurated Mayor Zohran Mamdani’s housing agenda is facing its first test as the city balks at the bankruptcy sale of thousands of rent-stabilized apartments owned by Pinnacle Group, where residents have railed against living conditions.
City authorities on Monday asked a bankruptcy judge to delay a Chapter 11 auction scheduled for Thursday, saying they need more time to both evaluate a proposed $451 million deal to Summit Properties USA and “explore any potential alternatives.” After the buildings were put into bankruptcy last year, Summit offered to buy dozens of buildings in Brooklyn, Manhattan, Bronx and Queens in the form of a stalking horse bid, meaning the transaction is subject to potentially better offers at auction.
Advisers representing the bankrupt properties haven’t provided the city with information about Summit’s ability to consummate the proposed sale or whether it is willing and financially able to repair the buildings, New York City Corporate Counsel Muriel Goode-Trufant said in a court filing. The Pinnacle-owned buildings owe the city $12.7 million for unpaid debts and housing violations, the city said…